Core Viewpoint - The article discusses the current state and future prospects of the Chinese storage industry, emphasizing the challenges posed by international competition and internal price wars, while also highlighting the opportunities presented by the rise of AI and data storage needs [3][4][6]. Industry Challenges - The global storage market has reached a scale of nearly $100 billion, but many domestic storage manufacturers in China are still caught in price wars, while international giants have their HBM production capacity booked until 2027 [3][6]. - The mechanical hard disk (HDD) market in China consumes nearly 60 billion yuan annually, but the lack of core technology and insufficient production capacity puts the industry in a passive position amid global supply fluctuations [3][8]. Opportunities in the Storage Industry - Despite challenges, there is optimism about the future of the Chinese storage industry, with significant advancements in domestic technology and production capabilities [4][6]. - The annual data generation in China has increased dramatically, and the country has achieved a high level of domestic production in storage components and systems [4][6]. AI's Impact on Storage - The rise of AI is driving demand for storage solutions, with major global players like Samsung, SK Hynix, and Micron shifting their production towards HBM-related chips, leading to a tightening supply of standard storage products [6][8]. - The development of AI is reshaping the storage industry, necessitating a shift from traditional IT systems to data-centric architectures that can handle massive data processing and transmission [9][10]. Future Directions - Huawei plans to launch an AI data platform that integrates AI capabilities into storage solutions, indicating a shift towards intelligent data platforms rather than mere data storage [10][12]. - The traditional data tiering system is being simplified in the AI era, with all data potentially needing to be accessed at any time, which requires new storage media that can handle large volumes economically [11][12]. Call for Innovation - There is a strong call for domestic storage companies to move beyond low-level price competition and focus on technological innovation to enhance their competitiveness in the global market [12]. - The storage market is projected to grow significantly as digitalization transitions to intelligence, highlighting the importance of accelerating technological advancements in the storage industry [12].