Milk Road AI analyst: Changxin Storage is unlikely to change the global DRAM competition pattern in the short term

Milk Road AI analyst pointed out that Changxin Storage's global DRAM market share has increased to about 7.7% -8%, and its revenue in the first quarter of this year increased by 719% year-on-year to 50.8 billion yuan. Changxin Storage benefits from Samsung, SK Hynix, and Micron's shift in production capacity towards AI server storage, filling the demand for mid to low end DRAM. Changxin Storage has a monthly wafer production capacity of approximately 290000-320000 wafers, which is lower than the scale of Samsung's approximately 630000 wafers and SK Hynix's approximately 500000 wafers. The export restrictions on advanced lithography equipment in the United States have limited the expansion speed of Changxin Storage. Changxin Storage has difficulty entering the HBM market in the short term, while Samsung, SK Hynix, and Micron will still maintain their advantages in high profit products.