Shang Hai Zheng Quan Bao·2025-11-17 13:59Core Viewpoint - The storage chip sector in the A-share market is experiencing a resurgence, driven by price increases from major players like Samsung, which supports market momentum. Additionally, insights from SMIC's investor briefing reveal significant trends in the storage industry [2][3]. Group 1: Market Dynamics - There is a severe shortage of storage chips for mobile phones, leading to substantial price increases. SMIC reported a production capacity utilization rate of 95.8% in Q3, indicating a supply-demand imbalance [3]. - The cautious ordering behavior from clients in the network communication sector is contributing to a conservative outlook for Q4, despite a generally positive recovery in various markets such as consumer electronics and automotive [3][4]. - A 5% fluctuation in supply can lead to exponential price changes in the storage market, highlighting the sensitivity of prices to supply-demand dynamics [5]. Group 2: Inventory and Order Trends - The current tight supply of storage chips has stimulated a clear demand for inventory replenishment, resulting in increased orders, although the future trend remains uncertain [6]. - SMIC has observed three key dynamics: 1. Clients are increasing inventory for analog and power products to capture market share, while the industrial and automotive sectors are replenishing stocks to safe levels [7]. 2. There is a contradictory market sentiment where clients are inclined to stock up on storage chips for complete assembly but remain cautious about future supply uncertainties [7]. 3. SMIC has received a significant number of urgent orders for various products, including NOR/NAND Flash and MCUs, leading to a temporary decrease in the proportion of mobile business as non-urgent orders are postponed [7].