South Korean Memory Giant Says Shortage May Persist Until 2030; Longsys and GigaDevice Both Rise Over 7%

Cailian Press, March 18 (Editor: Hu Jiarong) Hong Kong stock storage concept stocks once again become the market focus. As of press time, Lianliang Technology (06809.HK) rose 7.09%, and GigaDevice (03986.HK) increased 7.08%.

Meanwhile, leveraged ETFs tracking Korea’s leading storage industry players also surged significantly, with South China’s double-long Samsung Electronics (07747.HK) and South China’s double-long SK Hynix (07709.HK) both rising over 8%. These performances reflect investors’ optimistic sentiment toward the storage sector.

AI-driven demand explosion, Samsung Electronics’ capacity schedule is full

Currently, the storage chip industry has officially entered a “golden cycle.” As a global leader in storage, Samsung Electronics is benefiting greatly from the strong demand triggered by AI chips.

According to a recent investment report by KB Securities analyst Jeff Kim, as AI chip manufacturers’ demand for storage components continues to rise, Samsung Electronics is expected to achieve comprehensive revenue growth. Kim predicts that the DRAM and NAND flash memory markets will remain tight supply in the coming years. He specifically points out that Samsung Electronics’ current orders are fully booked through 2027, with all projected production sold out.

Faced with this supply shortage, downstream customers are seeking to sign long-term procurement agreements to ensure supply chain security, with some companies even proposing five-year contracts extending until 2030. However, Samsung Electronics prefers to sign shorter-term contracts to retain pricing flexibility. This strategy aims to lock in higher profits through short-term renewals in a market where chip prices are continuously rising, balancing long-term supply security with high-price strategies.

Wafer shortage exceeds 20%, shortage may persist until 2030

Regarding the global memory chip supply outlook, South Korea’s SK Group Chairman Chey Tae-won issued a longer-term warning. During Nvidia’s GTC conference, he revealed that due to long-term structural constraints in semiconductor production, the global memory chip shortage could last for 4 to 5 years.

Chey Tae-won pointed out that although industry leaders like SK Hynix are actively expanding production, the severe shortage of foundational wafers limits capacity expansion. The entire industry’s capacity is expected to fully meet market demand only around 2030. Data shows that the current supply of base wafers used for chip manufacturing is over 20% short of demand. This structural shortage is not only impacting corporate profits and disrupting development plans of major manufacturers but also directly driving up prices for end products such as laptops, smartphones, automobiles, and data centers.

The market generally agrees that before a substantial improvement in supply and demand, shortages will likely intensify further. SK Hynix has stated it is preparing to announce measures to stabilize prices but has not disclosed specific details.

Institutional views: huge room for valuation recovery, HBM and DRAM prices soar together

In a January 2026 report, Morgan Stanley raised SK Hynix’s target price from 730,000 KRW to 840,000 KRW, maintaining an “Overweight” rating.

They also noted that the prices of DRAM, NAND, and high-bandwidth memory (HBM) are expected to rise beyond expectations. Especially HBM, as a core bottleneck for AI computing power, has not yet been fully reflected in stock prices.

UBS recently stated in a report that “DRAM suppliers clearly hold the upper hand.” Based on strong price prospects, UBS has raised its revenue and profit forecasts for Samsung Electronics and SK Hynix for 2026 and 2027. Their survey shows that negotiations for DDR memory contract prices are progressing positively, with expected month-on-month increases of 21% or more.

Lianliang Technology and GigaDevice both up over 7%

Regarding the strong performance of Lianliang Technology and GigaDevice, some analysts believe this is an inevitable result of the reshaping of the global valuation system:

Shadow stock effect: Lianliang Technology and GigaDevice are in the same industry chain segment as Korean giants. When global industry leaders’ valuations are significantly reassessed due to “shortage + price increase” logic, Hong Kong stocks as “shadow stocks” or “benchmark stocks” are naturally sought after by funds for a rebound and valuation recovery.

Realization of technological barriers: As DDR5 penetration increases and AI servers expand, demand for Lianliang Technology’s interface chips surges; meanwhile, capacity squeeze effects in main storage benefit niche storage markets like GigaDevice’s, driving product volume and prices higher.