Citigroup Global Securities included Nanya Branch (2408) in the research scope for the first time. It is optimistic that traditional DRAM will welcome the growth of structural demand, and the downward cycle of memory has bottomed out. 88 yuan given by the securities.
There are two main reasons for Nanya’s traditional DRAM to usher in structural growth: the increase in demand for automotive DRAM and the increase in the adoption of CXL technology. First of all, CXL is an open standard for processors, memory expansion and accelerators, which will bring growth opportunities for low-end DRAM products. For Nanya Technology, controller and memory pooling can significantly improve low-end memory chips. Performance, reaching the level of high-end chips, Citigroup Global estimates that CXL will bring an additional 10% demand growth for Nanya in 2025, and further increase to 15% and 20% in 2026-2027.
Secondly, the demand for automotive semiconductors is accompanied by the structural growth of the electric vehicle market. Nanya Technology has benefited from the increase in demand for automotive memory. Although DDR3 is generally considered to be a mature product, it is still widely used in the field of automotive semiconductors. In this way In this environment, Citigroup Global Securities estimates that the proportion of automotive-related applications in Nanya’s total revenue will increase year by year from 5% in 2023 to 18% in 2027.
It is worth mentioning that after Micron and SK Hynix cut production by 20% and 10%-20% respectively in the fourth quarter of 2022, South Korea’s Samsung also announced a reduction in production capacity in April. Unified Investment Consulting pointed out that since Samsung’s global market share in the DRAM market is as high as 40.6%, the reduction in production is of great significance. It is expected that the spot price will stop falling and rebound at the end of this quarter, and the contract price will bottom out in the third quarter and rebound in the fourth quarter. The worst situation is over. Pass.
further reading
Quotation stabilized Nanya Branch, ADATA legal person
Nanya Branch lost 0.54 yuan per share in the first quarter
Macronix and Nanya Branch’s spot prices will rebound in Q2
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