On June 9, BIWIN Storage (CXSH: 688525) announced it had entered into two significant long-term supply agreements with NAND flash manufacturers worth a combined total of 18.61 billion yuan (approximately $3.36 billion USD), securing supply of enterprise-grade SSD NAND flash components through 2028.
First Agreement: 18.61 Billion Yuan Enterprise SSD NAND Contract
According to the company announcement, the first agreement involves purchasing enterprise-grade NAND flash particles from a storage manufacturer. The contract commits to purchasing agreed quantities at fixed prices over a 24-month period ending June 30, 2028. Key details include:
- Total Commitment: 18.61 billion yuan (~$2.64 billion USD)
- Duration: 24 months from effective date through June 30, 2028
- Structure: Fixed price and locked volume ("锁量锁价")
- 2026 Volume: Represents 4.45% of company's 2025 NAND FLASH procurement volume
- 2027 Volume: Represents 14.88% of company's 2025 NAND FLASH procurement volume
The fixed-price structure is notable as it locks in pricing regardless of market fluctuations, differing from typical Long Term Agreements (LTAs) which often include price range adjustments based on market conditions.
Second Agreement: 15 Billion Yuan Memory Wafer Contract
In March 2026, BIWIN announced another significant long-term supply agreement worth 15 billion yuan (~$2.10 billion USD) for memory wafers, also structured as a 24-month commitment ending March 31, 2028. This agreement stipulates that the company's procurement of this specific product every 12 months represents 11.1% of its 2025 NAND Flash procurement volume and 18.01% of its 2025 NAND Flash sales volume.
Strategic Rationale: Locking Supply in AI-Driven Demand Surge
These agreements come amid significant price increases for NAND Flash and DRAM in 2026, making long-term contracts attractive for securing both capacity and pricing stability. Industry analysts note that while these contracts represent a modest percentage of BIWIN's total procurement volume, they provide supply assurance for key customers and important projects.
More importantly, the first agreement specifically targets enterprise-grade storage, a segment seeing particularly strong demand growth and pricing strength in the current AI infrastructure buildout cycle. Enterprise SSDs command higher value margins than consumer-grade applications and show stronger growth elasticity in AI computing environments.
Company Background and Financial Performance
Founded in 2010, BIWIN Storage focuses on the R&D, packaging, testing, production, and sales of semiconductor memory products. The company's business model involves sourcing NAND Flash and DRAM wafers from upstream manufacturers, then packaging and testing them into eMMC, UFS, ePOP, SSD, and other storage products for downstream customers.
Key financial metrics demonstrate strong momentum:
- Market Cap: 149.5 billion yuan (~$21 billion USD) as of June 10, 2026
- 2025 Revenue: 11.30 billion yuan, +68.82% YoY
- 2025 Net Profit: 853 million yuan, +429.07% YoY
- 2026 Q1 Revenue: 6.81 billion yuan, +341.53% YoY
- 2026 Q1 Net Profit: 2.90 billion yuan, +1567.9% YoY
The company's Q1 2026 profit of 2.90 billion yuan already represents 2.39x its full-year 2025 net profit, highlighting the explosive growth driven by the AI storage demand cycle.
Strategic Significance
While BIWIN has historically been strongest in PC, smartphone, and smart glasses consumer applications, its enterprise storage business—primarily serving server OEMs, telecom operators, and cloud service providers—remains in a rapid growth phase. The substantial enterprise SSD NAND order suggests significant progress in expanding this higher-margin segment.
As AI computing infrastructure deployment accelerates globally, storage solutions providers with secured enterprise-grade component supply are well-positioned to capture market share. BIWIN's long-term agreements provide visibility into sustained demand through 2028, aligning with industry projections for continued AI infrastructure investment.
