Summary of Conference Call on Customized Storage and 3D DRAM Technology Industry Overview - The conference focuses on the **3D DRAM** industry, particularly advancements in **Processing in Memory (PIM)** technology and its integration with DRAM [1][3][20]. Key Points and Arguments PIM Technology - **Samsung** is actively promoting PIM technology, integrating it directly with DRAM at the DDR level, which is expected to become a development hotspot [1]. - **SK Hynix** is also pushing related protocols, with potential adaptations from **Qualcomm** and **MTK** [1][3]. - PIM optimizes bandwidth requirements for large model inference by placing the most bandwidth-demanding components within memory [1][6]. 3D DRAM Market Dynamics - **Changxin Semiconductor** dominates the domestic 3D DRAM market with strong competitiveness and high user stickiness, potentially becoming a de facto standard [1][7]. - Current mature technology supports up to **8 layers** of stacking, with bandwidth sweet spots around **1-2TB** [9]. - The cost structure indicates that DRAM manufacturers capture the highest value in the customized storage segment, with costs exceeding **50%** of chip expenses [14][15]. Technical Comparisons - **PIM vs. Traditional SOC**: PIM offers high internal bandwidth but does not significantly enhance the main SoC's bandwidth, as it offloads bandwidth-intensive tasks to DRAM [6]. - **3D DRAM vs. Standard DDR4**: 3D DRAM uses Die-to-Die or Wafer-to-Wafer packaging, imposing limitations on SoC size and power consumption, contrasting with traditional DIMM designs [8]. Industry Players and Competitiveness - Domestic players include **Changxin** and **Changchun**, with Taiwanese firms like **Nanya** and **Micron** having higher demand for 3D DRAM but lower technical capabilities [5]. - **Wuhan Xinxin** employs advanced packaging technology (XSTACK) but lacks its own fab, limiting large-scale production [26][27]. Future Trends and Challenges - The integration of **HBM** (High Bandwidth Memory) and 3D DRAM is anticipated, with HBM being favored for high bandwidth and cooling efficiency in GPU applications [20][21]. - The potential for customized storage to replace HBM is limited due to inherent advantages of HBM in capacity and thermal management [21]. - The market for customized storage is expected to grow, but prices may not significantly drop until production scales and technology matures [31]. Application and Market Demand - Different end-user devices (e.g., smartphones, PCs, automotive) have varying requirements for storage and computing products, with smartphones demanding low power and compact designs [22][23]. - The timeline for seeing related products in the consumer market is projected for early to mid-next year, with AI PCs expected to lead the way [24]. Conclusion - The 3D DRAM and customized storage market is evolving with significant technological advancements, competitive dynamics, and varying application needs. The interplay between PIM, HBM, and traditional DRAM solutions will shape future developments in the industry [34].

Core Insights - Hefei Xinhui Microelectronics Co., Ltd. (referred to as "the company") has strategically entered the storage chip packaging and testing sector by investing in Hefei Xinfeng Technology Co., Ltd. and collaborating with East China Technology (Suzhou) Co., Ltd. This move is crucial for expanding its display driver packaging and testing business boundaries and enhancing its competitive edge in the domestic and international storage chip markets [1][4] Group 1: Strategic Positioning - The company leverages the robust semiconductor industry cluster in Hefei, which has allowed it to achieve significant scale in display driver packaging and testing, thus accumulating valuable operational experience [1][2] - By adopting a combination investment model, the company directly acquired a 27.5445% stake in the target entities with an investment of 90.4841 million yuan, while also holding indirect stakes through private equity funds, minimizing risks associated with single business expansion [1][3] Group 2: Operational Efficiency - The local semiconductor ecosystem, including wafer manufacturing and substrate supply, significantly reduces supply chain costs and response times for the storage packaging and testing business [2] - The company plans to enhance its storage packaging capacity by the end of 2027, utilizing its efficient production management and customer service processes from the display driver sector to expedite the transition to large-scale operations [2][4] Group 3: Market Opportunities - The global storage chip market is experiencing structural opportunities driven by AI infrastructure demands, with a notable increase in prices for storage chips over the past six months [3] - The company’s entry into the storage packaging and testing market reflects its strategic foresight and market insight, aiming to establish a dual-core business model of "display + storage" to fuel long-term growth [3][4] Group 4: Technological Advancements - Collaboration with East China Technology, which possesses 3D CUBE solutions, positions the company to make breakthroughs in advanced packaging for 3D DRAM, addressing domestic market gaps and aligning with AI-era storage needs [3] - The company’s non-controlling equity layout helps mitigate short-term profit pressures while leveraging past financial advantages and local investment platforms to promote capacity expansion [3][4]

Summary of Conference Call on Storage Industry and Key Companies Industry Overview - The storage industry is experiencing a significant upward trend in capital expenditure driven by product iterations, particularly the transition from over 200-layer to over 300-layer NAND products, with a capital expenditure slope of approximately 20%-30% per 10,000 wafers [1][2] - DRAM technology innovations, such as the increase in DDR5 market share, the implementation of 3D DRAM projects, and the industrialization of domestic HBM, are expected to further drive capital expenditure growth in the coming year [1][2] Impact on Equipment Companies - The cyclical changes in the storage industry significantly affect the revenue of upstream equipment companies. Since 2019, overseas equipment companies have seen a compound annual growth rate (CAGR) of 25%-30% in storage chain revenue [1][3] - Domestic companies like Zhongwei and Tuojing Technology benefit from the high localization rate of long-term storage equipment, with revenue exposure from the storage sector reaching 60%-70% [4][5] Key Companies Recommended - **Tuojing Technology and Zhongwei Company** are recommended due to their expected growth in orders from long-term storage expansion, with Zhongwei anticipating a 30%-40% increase in orders next year [1][5] - Tuojing Technology is expected to see rapid improvement in profitability driven by accelerated order delivery, a gross margin recovery to over 40%, and a reduction in expense ratios to 20%-25% [1][5][6] Factors Driving Profitability for Tuojing Technology - Key factors for Tuojing Technology's future profitability include: - Accelerated order delivery leading to significant revenue growth - Recovery of gross margins to over 40% - Expense reductions, including stable employee compensation and decreased stock incentive costs, allowing profit margins to potentially rise to 20%-25% [6] - New layouts in the hybrid bonding sector are expected to create additional market demand, particularly with the rollout of 3D DRAM projects and HBM 5 industrialization [6] Importance of Hybrid Bonding Technology - Hybrid bonding technology is crucial for Tuojing Technology's development, meeting current demands and extending into future markets [7] - By 2026, successful validation from downstream customers and expanded demand in sectors such as SOIC, GPO, and smart glasses will enhance the company's growth potential [7] Additional Equipment Companies to Watch - Besides the core recommendations, smaller equipment companies like Jiao Cheng Ultrasonic and Jing Zhi Da are also worth monitoring. These companies may experience favorable order elasticity and exposure as HBM 0-1 enters industrialization in 2026 [8]

Summary of the Conference Call on Huicheng Co., Ltd. and New Wind Technology Company and Industry Overview - **Company**: New Wind Technology, a company established in 2019, focuses on DRAM packaging and testing, with a complete capability from wafer testing to packaging testing [2][5][6] - **Industry**: The memory chip market, particularly DRAM, is the largest chip market globally, with China's demand exceeding 600 billion RMB [2][8] Key Points and Arguments Shareholding Structure and Control - Huicheng and its partners hold approximately 57% of New Wind Technology, with Huicheng directly holding 18.44% and indirectly holding 27.5% through funds [2][3] - Recent transactions involved Huicheng purchasing 18.44% of shares for 90.48 million RMB and acquiring an additional 44.57% from existing major shareholders, totaling 63.01% of shares transferred [3] Future Plans and Financing - New Wind plans to initiate 400 to 500 million RMB in equity financing and 100 to 200 million RMB in bank debt financing by Q4 2025 to support capacity expansion [3][14] - The company aims to increase its production capacity from 20,000 wafers per month in 2025 to 40,000 in 2026 and ultimately to 100,000 to 120,000 by 2027 [6][10] Market Position and Customer Base - New Wind's primary customer is Changxin Storage, which is expected to increase its production capacity from 250,000 wafers per month to 400,000 by 2026 [8] - The company aims to become one of the top suppliers to Changxin, leveraging its close relationship and geographical advantages [8][11] Technological Advantages - New Wind has significant advantages in 3D DRAM packaging, excelling in key metrics such as flatness, hole size, and warpage [2][11] - The company is also expanding into customized UFS products and 3D CUBE products, targeting a market size expected to reach hundreds of billions [12] Revenue Growth Potential - If New Wind captures 20% of the domestic DDR and LPDDR packaging market, it could generate an additional 1.65 billion RMB in revenue [13] - The company is expected to achieve significant growth through capacity expansion and the introduction of high-value-added products [13] Strategic Partnerships - Huicheng has signed a strategic cooperation agreement with Huadong Technology to jointly develop storage chip packaging services, enhancing competitiveness in the DRAM packaging market [3][26] Competitive Landscape - New Wind is one of only five companies in China capable of 3D DRAM packaging, positioning it favorably against competitors [8][19] - The company is focused on optimizing its processes and maintaining a competitive edge in the evolving 3D DRAM market [19] Future Outlook - The storage industry, particularly the DRAM sector, is expected to experience prolonged demand due to the rise of AI technologies, which will increase the need for high-end storage solutions [21] - New Wind's expansion plans and strategic partnerships are anticipated to contribute positively to its long-term growth and market position [22][31] Other Important Insights - New Wind's current production capacity is fully utilized, and while it is expanding, it has not yet reached economies of scale, which may delay profitability [23] - The company does not currently plan to consolidate with Huicheng but will continue to operate independently while benefiting from strategic synergies [15][22]

Core Viewpoint - Beijing Junzheng (300223.SZ) is currently researching 3D DRAM technology, indicating a focus on advanced memory solutions in its product development strategy [1] Company Summary - The company has announced its ongoing research into 3D DRAM, which suggests potential advancements in memory technology that could enhance its competitive position in the semiconductor industry [1]

Summary of Next-Generation DRAM 2025 Report Industry Overview - The report focuses on the **Dynamic Random-Access Memory (DRAM)** industry, particularly the **High Bandwidth Memory (HBM)** and **3D DRAM** technologies [3][28][52]. Core Insights and Arguments - **Market Growth**: The HBM market is projected to grow significantly, with revenues expected to rise from **$17 billion in 2024 to $98 billion by 2030**, reflecting a **33% CAGR** [52]. - **Bit Shipments**: HBM bit shipments are forecasted to grow at a **31% CAGR** through 2030, with a **193% YoY increase** in 2024 [52]. - **Revenue Share**: HBM's revenue share within the DRAM market is expected to increase from **18% in 2024 to 50% by 2030** [52]. - **Conventional DRAM Growth**: Conventional DRAM, including DDR, LPDDR, and GDDR, is expected to grow at a modest **3% CAGR** from **$80 billion in 2024** [52]. - **Technological Transition**: The industry is preparing for a shift to **3D DRAM architectures** as planar DRAM scaling reaches its limits by **2033-2034** [53][54]. Key Market Dynamics - **Supply Constraints**: Current supply constraints in HBM underscore its strategic importance in AI data centers, with major manufacturers fully allocating their production capacity through 2025 [52]. - **Investment in Capacity**: Leading suppliers, including **Samsung, SK hynix, and Micron**, are increasing wafer allocations for HBM production to meet escalating demand [52]. - **China's Advancements**: Chinese companies are making significant investments to localize memory production amid U.S. sanctions, with **CXMT** ramping up production and developing HBM capabilities [53]. Technology Trends - **CBA Integration**: The **CMOS Bonded Array (CBA)** architecture is expected to deliver up to a **30% increase in bit density** and is seen as a crucial step towards full 3D DRAM [54]. - **Emerging Technologies**: The report highlights the importance of **processing-in-memory (PiM)** and **3D DRAM** as promising long-term solutions for achieving high-density DRAM architectures [28][54]. - **Advanced Packaging**: Hybrid bonding is projected to enter the market with HBM5, particularly for high-stack configurations, enabling more than **20 dies per stack** [54][79]. Financial Metrics - **Revenue Forecasts**: The overall DRAM market is expected to grow from **$97 billion in 2024 to $194.5 billion by 2030**, with a combined CAGR of **12%** [52]. - **ASP Dynamics**: The average selling price (ASP) of HBM is projected to remain stable due to sustained demand, despite competitive pressures [52]. Additional Important Insights - **Market Cyclicality**: The report outlines the cyclicality of the DRAM market throughout history, emphasizing the need for manufacturers to adapt to price fluctuations and market dynamics [17]. - **Player Dynamics**: The competitive landscape is intensifying, with **SK hynix** leading the HBM market, followed by **Samsung** and **Micron**, who are working to catch up [53]. - **Technological Challenges**: The transition to advanced DRAM technologies faces challenges related to cost, yield, and alignment requirements, necessitating innovative solutions [54]. This comprehensive analysis provides a detailed understanding of the current state and future prospects of the DRAM industry, highlighting key trends, market dynamics, and technological advancements that are shaping the landscape.

Group 1 - HBM (High Bandwidth Memory) has become the main driver for growth in the DRAM market, addressing bandwidth bottlenecks, high power consumption, and capacity limitations, with the global HBM market expected to grow from $17 billion in 2024 to $98 billion by 2030, representing a CAGR of 33% [1] - The 3DDRAM technology, which utilizes a vertical architecture to break through traditional process limits, is anticipated to be a long-term solution, with key manufacturers like SK Hynix and Samsung planning to launch HBM4 products by 2025 and 2026 respectively [1][2] - The shift towards 3DDRAM is expected to benefit high aspect ratio etching and thin film deposition processes, as the industry value is moving from lithography equipment to etching and deposition segments [2] Group 2 - The W2W (Wafer-to-Wafer) bonding process is crucial for 3DDRAM, with the bonder market projected to grow from 100 billion yen in 2025 to 300 billion yen by 2030, driven by the need to stack control circuits vertically [3] - Chinese manufacturers may achieve a competitive advantage in the 3DDRAM era due to limited reliance on EUV (Extreme Ultraviolet) lithography, focusing instead on etching, thin film, and bonding technologies [4] - Customized storage solutions are becoming increasingly important for edge AI applications, with companies like Winbond and Nanya targeting specific markets such as AI servers and AI-enabled devices, indicating a positive outlook for domestic manufacturers [5][6]

Group 1: Company Overview and Market Position - Beijing Junzheng Integrated Circuit Co., Ltd. is focusing on upgrading storage products, particularly DDR4 and LPDDR4, to penetrate markets like automotive, especially in electric vehicles [2][3]. - The company has shifted from a 25nm process to 18nm and 16nm, enabling the introduction of 8G LPDDR4 and higher capacity products [2][3]. Group 2: Revenue Projections and Product Strategy - Currently, DDR3 accounts for nearly 50% of the company's revenue, but with new product introductions, DDR4 and LPDDR4 are expected to significantly increase their sales share in the coming years [3]. - The gross margin for storage products has historically fluctuated around 30%, with new products expected to enhance revenue and sales volume rather than significantly increase margins [3]. Group 3: Market Trends and Growth Opportunities - The automotive market is showing signs of recovery, with a gradual increase in revenue from this sector, particularly in China, while Europe is experiencing a decline [4][5]. - The niche DRAM market is estimated to be around $10 billion, with half of that being high-reliability applications, including automotive and industrial sectors [5]. Group 4: Product Development and Competitive Advantage - The company is collaborating with Tier 1 manufacturers and main control chip suppliers to ensure high reliability and long-term supply capabilities for automotive applications [6]. - New product developments include LPDDR5 for automotive applications, with plans to expand into AI-related products and high-performance computing solutions [7]. Group 5: Future Outlook and Market Expansion - The company is entering new markets such as printers and robotic vacuum cleaners, leveraging low power consumption and cost-effectiveness to gain traction [6]. - There is a strategic focus on enhancing computing power in camera applications, with plans to increase processing capabilities from 1T to 4T, and exploring opportunities in edge computing and AI [7].

Summary of Beijing Junzheng's Conference Call Company Overview - **Company**: Beijing Junzheng - **Industry**: Semiconductor, specifically focusing on computing chips, storage chips, and analog interconnect chips Key Points and Arguments Financial Performance - In the first half of 2025, Beijing Junzheng achieved total revenue of approximately 2.25 billion yuan, representing a year-on-year growth of 6.75% [4] - Net profit for the same period was 203 million yuan, showing a growth of less than 3% [4] - Revenue from computing chips was 604 million yuan, up 15.6% year-on-year, driven by embedded SoC and smart video products [2] - Storage chip revenue was 1.38 billion yuan, a 5.2% increase, primarily targeting automotive, industrial, and communication sectors [2] - Analog interconnect revenue reached 240 million yuan, growing by 5% [2] Product Line Developments - The company is focusing on three main product lines: computing chips, storage chips, and analog interconnect chips [5] - New developments include the introduction of AI MCUs in computing chips and the ongoing research into 3D DRAM products in storage chips [5] - The company plans to enhance its SoC chip product line and expand into overseas markets, with a focus on high-performance NPU development [10] Market Trends and Strategies - The storage chip market is showing signs of recovery after a downturn, with a significant demand for DRAM products, especially in the automotive sector [11][12] - The company is upgrading its DRAM product line to 18nm and 16nm nodes, with DDR4 and subsequent technologies expected to dominate shipments in the next couple of years [3][19] - The automotive storage market is projected to grow significantly, driven by the increasing demand for smart applications and autonomous driving technologies [22] Competitive Positioning - The company maintains a competitive edge through long-term partnerships with automotive manufacturers and the ability to provide high reliability and comprehensive technical support [24] - Despite challenges in entering new markets, the company leverages its experience in the security field to innovate and compete effectively [27] Future Outlook - The company is optimistic about the future, with expectations of continued growth in the automotive market and the successful launch of new products, including high-capacity LPDDR4 for smart cockpits and autonomous driving systems [23][22] - The development of 3D DRAM is seen as a significant opportunity, with ongoing collaborations with clients in AI and high-performance computing sectors [30] - Overall, 2025 is viewed as a pivotal year for the company, with strategic initiatives expected to drive future revenue growth [33] Additional Important Insights - The company is actively pursuing a Hong Kong stock listing to support its globalization strategy amidst a complex global political and economic environment [6] - The analog interconnect business is also showing resilience, with a gross margin of 51% in the first half of 2025 [17] - The company has a robust inventory buffer of approximately 2 billion USD to mitigate supply chain challenges [26]

Core Viewpoint - The research conducted by IMEC and Ghent University represents a significant advancement towards 3D DRAM technology, achieved by alternating the growth of 120 layers of silicon and silicon-germanium on 300mm wafers, overcoming challenges related to lattice mismatch and defect management [2][4][6] Group 1: Technical Achievements - The team successfully adjusted the germanium content in silicon-germanium layers and introduced carbon to alleviate stress, ensuring uniform temperature during deposition to prevent defects [2][4] - The advanced epitaxial deposition technique allows for precise control over the thickness, composition, and uniformity of each layer, which is crucial for maintaining structural integrity in the stacked configuration [4][6] Group 2: Implications for Memory Technology - Traditional DRAM's planar layout limits density, while vertical stacking (3D) enables more storage units in the same footprint, enhancing storage capacity without increasing chip size [4][6] - The successful construction of 120-layer structures indicates that vertical scaling is feasible, bringing the industry closer to next-generation high-density storage devices [4][6] Group 3: Broader Impact on Semiconductor Industry - The precise multi-layer growth technology could advance the development of 3D transistors, stacked logic devices, and even quantum computing architectures, where atomic-level control of layer characteristics is essential [6] - This research aligns with ongoing developments in Gate-All-Around Field Effect Transistors (GAAFET) and Complementary Field Effect Transistors (CFET), which benefit from the precise material control enabled by epitaxial growth techniques [6]