This implicitly de-risks the #1 bear case for all three memory positions. Chinese Memory ovecapacity tail risk. They barley have enough memory for their own country, let alone flood the world with it
The bear thesis has always been: CXMT/YMTC build 300K WPM, flood the market with cheap memory, ASPs crash,
$SKHynix/
$Samsung/
$MU margins compress.
Before China can flood the GLOBAL market, Chinese fabs need to FIRST satisfy Chinese domestic demand. At 180% 3-month price surges, they're not even close. It's almost like
@MartinShkreli is pricing memory globally.
$MU $DRAM
Automotive memory chip prices surge 180% over three months; Chinese EV makers raise prices one after another
• The Chinese new energy vehicle market has recently seen a series of price adjustments. Several EV models have either raised their selling prices or reduced existing discounts. A staff member at an EV 4S dealership in Beijing said that while official vehicle prices have not changed, the price of autonomous-driving option packages for some models has increased from RMB 9,900 to RMB 12,000 since May.
• Automakers are citing the sharp rise in global memory hardware prices as the main reason for these price adjustments. According to available data, automotive memory chip prices have risen by around 180% over the past three months. Based on incomplete statistics, more than 10 EV makers in China have recently raised vehicle prices or reduced discount levels, with the increases generally ranging from RMB 2,000 to RMB 6,000.
• Meanwhile, as EV prices rise, internal combustion engine automakers are cutting prices and stepping up promotions. As of April this year, the average discount rate for internal combustion engine vehicles was around 23%, remaining at a high level for the ninth consecutive month. (CCTV)