HK Stock Market Move | Storage concept stocks collectively opened higher, Samsung Electronics once again raised Q1 DRAM prices, and the three major manufacturers collectively established a price increase trend.

Stock concept stocks collectively opened higher. As of the time of writing, GigaDevice Semiconductor Inc. (03986) rose by 5.39% to 387 Hong Kong dollars, while Montage Technology (06809) rose by 5.26% to 176 Hong Kong dollars. On the news front, on March 4th, according to market media reports, Samsung Electronics had finalized first quarter DRAM supply price negotiations with major customers last month. The average price of server, PC, and mobile universal DRAM rose by about 100% compared to the previous quarter, doubling from the fourth quarter of last year, with some customers and products seeing increases of over 100%. The report cited industry insiders revealing that negotiations had been completed, and some overseas customers had already made payments. The price increase is higher than the 70% level negotiated in January, expanding by about 30 percentage points in just a month. The supply negotiation period has compressed from traditional annual contracts to quarterly contracts, and now even requires monthly adjustments, reflecting the severity of the market supply-demand imbalance. It is worth mentioning that this price hike was not an isolated action by Samsung Electronics. According to reports citing industry insiders, SK Hynix and Micron also completed first quarter supply contract negotiations with similar increases, and the three major memory manufacturers have basically formed a collective price increase pattern. The upward trend in DRAM and NAND prices will continue in the second quarter, with a possible slowdown in the rate of increase, but the upward price trend itself is irreversible. For downstream customers, the continuous increase in memory procurement costs will further raise the overall cost structure of servers and terminal devices.