China’s Biwin Surges Following $1.8B Storage Chip Supply Pact

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Shares of a Chinese storage module company surged following the announcement of a $1.8 billion procurement agreement aimed at securing a steady supply of enterprise-grade storage chips. The company’s stock, which closed at CNY317.00 (approximately USD46.77) in Shanghai, rose by nearly 4%, after reaching an intraday high increase of 8.9%. This marks an overall increase of about 177% for the year.

The company will purchase NAND Flash chips at fixed prices and volume commitments from the third quarter of this year through the second quarter of 2028. The planned procurement for 2026 will be roughly 4.5% of the NAND chips bought the previous year, with this ratio increasing to nearly 15% in 2027.

Specific supplier details were not disclosed; however, the main global providers of NAND Flash wafers and chips typically include major players such as Samsung, SK Hynix, Kioxia, Micron, and Western Digital.

This long-term supply arrangement enables the company to lock in essential raw materials for the upcoming 24 months, providing a financial buffer and supply security. The company claims that overall risk remains manageable since this deal aligns with its operational scale and strategic planning.

Memory chips like NAND Flash are critical components for storage devices, with NAND being the most widely used storage medium worldwide. It is employed across various applications requiring durable, long-term data storage. High-quality NAND storage used in AI servers is a key driver of demand for NAND Flash.

Amid the growing demand from artificial intelligence sectors, the supply of storage chips is anticipated to remain tight for the foreseeable future. Securing fixed-term supply agreements can help the company stabilize raw material costs and availability.

Earlier in the year, the company entered another long-term deal worth around USD 1.5 billion for NAND Flash wafers.

As an independent provider of semiconductor storage solutions, the company saw its revenue jump 69% last year to CNY 11.3 billion (approximately USD 1.67 billion). Its net profit increased more than fivefold, reaching CNY 853 million (about USD 126 million), according to its annual report.