Investment Rating - The industry investment rating is "Positive" (maintained) [5] Core Insights - Micron's exit from the mobile NAND market is driven by strategic focus and alignment with industry trends, rather than solely profitability concerns [2] - The storage industry is witnessing a shift where wafer manufacturers focus on front-end processes, allowing storage solution providers to enhance their value by developing customized solutions [3] - The exit of Micron, a leading manufacturer, will improve the competitive landscape and create new demand redistribution dynamics within the industry [3] Summary by Sections Micron's Market Exit - Micron has announced significant layoffs in its UFS and eMMC departments, ceasing the development of mobile NAND products due to poor financial performance and slower growth compared to other NAND opportunities [1] - The decision reflects a broader trend where mobile NAND is increasingly customized, with phone manufacturers procuring wafers and outsourcing the design and production of storage solutions [2] Industry Trends - The storage industry is evolving, with major wafer manufacturers concentrating on front-end processes, thus providing more opportunities for storage solution providers to engage directly with clients [3] - The demand for high-performance, high-speed, and high-capacity storage solutions is expected to rise, particularly in the AI era, leading to greater value for solution providers [3] Beneficiaries of the Shift - Storage solution providers, particularly those with a high proportion of embedded storage, such as Jiangbolong and Baiwei Storage, are positioned to benefit from the favorable industry trends following Micron's exit [4]