In-Depth Analysis of the Impact of Storage Chip Price Hikes on Electronic Component Distributors

Based on in-depth market research and data analysis, I present to you an in-depth analysis report on

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The 2025 global storage chip market witnessed an “epic” price hike. According to CFM data, the comprehensive DRAM price index surged 47.7% in the first half of 2025, while the comprehensive NAND Flash price index rose 9.2% [1]. Since October 2025, the cumulative price increase of 512Gb Flash Wafer has exceeded 20%, earning storage chips the nickname “gold bars” in the market [2].

Specifically, the DRAM price index rose from 100 in January 2024 to 290 in November 2025, representing a whopping 190% increase; the NAND price index rose 105% over the same period. In Q3 2025, DRAM prices soared 171.8% year-on-year, far outpacing the price increase of gold during the same period [1][2].

This price hike cycle is mainly driven by imbalances on both the supply and demand sides:

• Samsung and SK Hynix, two storage giants, have raised the price of HBM3E for 2026, with an increase of nearly 20% [1]
• HBM production capacity has significantly squeezed the supply of standard DRAM, as HBM consumes three times the wafer capacity of standard DRAM [3]
• Storage manufacturers expect increased demand for 6th-generation HBM in 2026, and increased production capacity investment has led to a backlog of HBM3E production capacity
• Capacity expansion takes 2-3 years, so the supply-demand gap cannot be filled in the short term [2]

• Demand for AI data centers and servers continues to surge, with NVIDIA, Amazon, Google, and AMD accounting for 95% of HBM demand [1]
• Domestic tech giants (Alibaba, Baidu, ByteDance, Tencent) have significantly increased capital expenditures to boost AI investment [1]
• The dual resonance of demand from smartphones and servers is expected to drive another memory capacity upgrade for the iPhone in 2026 [1]

Institution	Expectation
Bernstein	The price uptrend may continue until the first half of 2026
Counterpoint	Storage prices will rise another 20% in early next year
China Merchants Securities	Expects DRAM and NAND capital expenditures to grow 14% and 5% respectively in 2026
AJ Securities	The price hike cycle in the global storage chip market is expected to continue in 2026

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Shangluo Electronics (300975.SZ) is a leading authorized distributor of passive electronic components in China, mainly serving electronics manufacturers in application fields such as network communications, consumer electronics, automotive electronics, and industrial control [4].

• Passive electronic components
  : 42.93% share (capacitors, inductors, resistors, RF devices, etc.)
• Active and other electronic components
  : 57.06% share (ICs, discrete devices, power devices, storage devices, connectors, etc.)

Since its establishment, Shangluo Electronics has obtained authorized agency qualifications from over 100 well-known domestic and foreign original manufacturers, including TDK, Samsung Electro-Mechanics, Yageo, Sunlord Electronics, TE (Tyco), ChangXin Memory Technologies, Leshan Radio, GigaDevice, Nexperia, and SEMIKRON [5].

• Has maintained partnerships with leading domestic storage original manufacturers such as GigaDevice and ChangXin Memory Technologies for over 5 years
• Successfully obtained the authorized agency qualification for Kioxia Storage in 2025
• Storage business accounts for approximately 25-30% of total revenue
• Supplies storage chip products to data center and server clients

Shangluo Electronics achieved substantial growth in 2025, fully benefiting from AI demand and the bullish storage market:

Indicator	First Three Quarters of 2025	Year-on-Year Change	Full Year 2024
Operating Revenue	RMB 6.189 billion	+32.8%	RMB 6.21 billion
Net Profit Attributable to Parent Company	RMB 141 million	+164.32%	RMB 213 million
Net Profit Margin	Approximately 6.3%	Increased by about 3 percentage points	Approximately 3.4%
Gross Profit Margin	Approximately 17.8%	Increased by about 2 percentage points	Approximately 15.8%

• Q3 2025: Main business revenue reached RMB 2.253 billion, a year-on-year increase of 26.55%
• First half of 2025: Revenue increased 36.66% year-on-year
• Net profit is expected to reach approximately RMB 520 million for the full year 2025, up from RMB 213 million in 2024 [5][6]

The company’s performance growth mainly stems from the following aspects:

1. Forward-looking layout in the AI field
   : Drives business volume expansion; product lines such as storage, high-speed connection chips, MLCCs, power devices, and crystal oscillators are all core components for AI

2. Capitalizing on the bullish storage market
   :
   • Stabilizes major client projects in smartphones, consumer electronics, and servers
   • Seizes the opportunity of DDR4 to DDR5 iteration and promotes the implementation of advanced process products
   • Leverages the shortage of eMMC and DDR4 to drive domestic substitution

3. Product line expansion
   : Vigorously promotes product lines of domestic leaders such as Hisilicon, Spreadtrum, and Foream, as well as high-quality overseas product lines such as Murata, Novatek, and Silicon Motion

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The transmission chain of storage chip price hikes is as follows:

Original Manufacturers (Samsung/SK Hynix/Micron) → Distributors (Shangluo/CePort/Yachuang) → End Clients (Server/Phone/PC Manufacturers) → Consumers

• Original Manufacturer Level
  : Storage manufacturers drive up prices through production cuts, volume control, and discontinuation of old products [2]
• Distributor Level
  : Procurement costs rise, and agency agreement prices are adjusted in line with original manufacturers’ adjustments
• Transmission Time
  : It takes about 1-2 months to complete price transmission from original manufacturers to end consumers, depending on inventory levels

Based on the analysis of each link, the smoothness of cost transmission shows a differentiated trend:

Assessment Dimension	Score	Analysis
Pricing Power of Upstream Original Manufacturers	9/10	Highly concentrated (top three manufacturers dominate), with extremely strong bargaining power
Inventory Management Capability of Distributors	7.5/10	Large distributors have buffer inventory to smooth out price fluctuations
Acceptance by Downstream End Clients	5.5/10	Low acceptance among small and medium-sized manufacturers; some have shut down early and are adopting a wait-and-see attitude
Demand Elasticity	6/10	Demand for AI servers is rigid, while demand for consumer electronics is more elastic
Competitive Landscape	7/10	Large distributors benefit, while small traders are under pressure and exit the market

• Inventory appreciation brings one-time gains, and gross profit margin improves
• Shangluo Electronics’ gross profit margin increased from approximately 15.8% to approximately 17.8%
• Revenue scale expands (operating revenue in the first three quarters of 2025 increased 32.8% year-on-year)

• Rising procurement costs are transmitted to the downstream
• Price transmission is basically completed
• Profitability tends to stabilize

• Industry differentiation intensifies
• Market share of large distributors increases
• Small traders are under pressure and exit the market

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On an interactive platform, Shangluo Electronics stated that storage price hikes may drive adjustments to agency agreement prices, and the company will do a good job in demand matching and connection to ensure supply chain stability and cost control [5].

• Original manufacturers usually notify price hikes in advance, giving distributors a 1-2 month buffer period
• Large distributors, relying on long-term cooperative relationships, can adjust agency prices relatively smoothly
• The adjustment range of agency prices is usually lower than the price increase of original manufacturers, allowing distributors to retain a certain profit margin

• 2024 gross profit margin: Approximately 15.8%
• Q3 2025 gross profit margin: Approximately 17.8%, an increase of about 2 percentage points
• The storage business accounts for approximately 25-30% of total revenue, contributing significantly to the overall gross profit margin

• 2024 net profit margin: Approximately 3.4%
• Net profit margin in the first three quarters of 2025: Approximately 6.3%, an increase of about 3 percentage points
• Net profit surged 164.32% year-on-year, reflecting the dual effects of economies of scale and gross profit margin improvement

Company	First Three Quarters of 2025 Revenue	Year-on-Year Revenue Growth	Net Profit Growth	Gross Profit Margin	Storage Business Share
Shangluo Electronics	RMB 6.189 billion	32.8%	164.32%	Approximately 17.8%	Approximately 25-30%
CePort	RMB 50.598 billion	33.29%	73.06%	Relatively low	42.53%
Yachuang Electronics	Approximately RMB 2.58 billion	28.5%	85.5%	Approximately 15%	Approximately 60%
Intelli-Tech	RMB 3.773 billion	2.72%	15.2%	Approximately 10%	Storage business growing rapidly

• Shannon Xinchuang: The gross profit margin of its distribution business is only 2.43%, but it improves comprehensive profitability through the “distribution + independent R&D + investment” model [6]
• CePort: Due to its high storage revenue share and relatively low gross profit margin, its net profit almost grew zero in 2024
• Shangluo Electronics: Driven by both passive and active components, it has a relatively high gross profit margin and obvious improvement in profitability

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• Some small and medium-sized end manufacturers dare not accept new orders or stock up due to inability to accept chip quotations
• Some manufacturers have shut down early and are facing operational difficulties [2]

• If storage prices fall from their highs, high-priced inventory will lead to losses
• SMIC warns: Storage price hikes may squeeze the profits of complete machines and trigger a foundry price war [3]

• During the craziest period from May to November 2025, prices changed daily, and there were many cases of earning millions in a few months by “flipping” scarce part numbers [2]
• Information distortion and intentional price gouging occur from time to time
• At the end of the year, some traders need to withdraw funds and take profits, so market speculation has subsided to some extent

• Demand differentiation drives the differentiation of manufacturers’ shipment structures, and the demand gap between AI servers and traditional servers widens
• The largest downstream buyers of storage giants have shifted from consumer electronics to cloud service providers

• Structural demand is rigid, and demand for AI data centers and servers is surging
• The iteration and upgrade of large models provide strong momentum for the growth of the AI computing power market

• Domestic manufacturers such as ChangXin Memory Technologies and GigaDevice are emerging
• Shangluo Electronics leverages the shortage of eMMC and DDR4 to drive domestic substitution
• Enhances distribution competitiveness

• Bernstein: The price uptrend may continue until the first half of 2026
• Institutions generally expect storage prices to remain high in the first half of 2026

1. Upgrade of distributors’ roles
   : Transformation from pure distribution to the “distribution + independent R&D + investment” model
2. Accelerated domestic substitution
   : Market share of local storage brands increases, and distributors deepen their binding with domestic original manufacturers
3. Increased industry concentration
   : Large distributors continue to increase their market share by virtue of their authorized agency qualifications with original manufacturers and client resources
4. Expansion of application fields
   : Emerging applications such as AI servers, data centers, and automotive electronics drive demand growth

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1. Storage chip price hikes are generally beneficial to distributors
   : Leading distributors such as Shangluo Electronics have fully benefited, achieving substantial performance growth
2. Agency price transmission is basically smooth
   : It takes about 1-2 months to complete transmission, and large distributors can smooth out fluctuations through inventory management and client resources
3. Profitability has improved significantly
   : Gross profit margin increased by about 2 percentage points, and net profit margin increased by about 3 percentage points
4. Industry differentiation intensifies
   : Large distributors benefit significantly, while small traders are under pressure and exit the market
5. There is still room for inertial price increases in the short term
   : Institutions expect the price uptrend to continue until the first half of 2026

• Large distributors with authorized agency qualifications with original manufacturers (e.g., Shangluo Electronics, CePort)
• Enterprises with a high share of storage business and strong inventory management capabilities
• Enterprises with leading layouts in AI server and data center businesses
• Enterprises with comprehensive capabilities in “distribution + independent R&D + investment”

• Risk of price correction from high storage prices
• End demand falling short of expectations
• Intensified industry competition
• Macroeconomic fluctuations affecting end consumption

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[1] Sina Finance - “Market Soars as Storage Chip Giants Raise Quotations” (https://finance.sina.com.cn/jjxw/2025-12-24/doc-inhcxqhz9550627.shtml)

[2] 36Kr - “Memory Chips Are Skyrocketing, How to Break Through with Domestic Substitution?” (https://www.36kr.com/p/3627426660484352)

[3] EET China - “PCBs, Storage, Passive Components… All These Chip Giants Are Raising Prices!” (https://www.eet-china.com/mp/a458415.html)

[4] Jufeng Finance - “What Does Shangluo Electronics Do? What is Shangluo Electronics’ Main Business?” (https://baike.jfinfo.com/4046225.html)

[5] NetEase - “Storage Prices Skyrocket, These Chip Distributors Are Quietly Profiting” (https://www.163.com/dy/article/KGTAERLL05538D6M.html)

[6] Sina Finance - “Why Has Middleman Shannon Xinchuang Become a Star Stock?” (https://finance.sina.com.cn/tech/roll/2025-12-10/doc-inhahnvi2239888.shtml)