To beat chip crunch, Chinese firm inks memory deal bigger than its sales

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To beat chip crunch, Chinese firm inks memory deal bigger than its sales

Chinese memory module maker Biwin has signed a two-year agreement worth US$1.86 billion to secure flash memory chips, a deal larger than its annual revenue, as demand from artificial intelligence servers and data centres squeezes supply. Under the locked-volume, locked-price arrangement, Biwin would buy enterprise-grade chips in batches from the third quarter of 2026 through the second quarter of 2028, according to a filing with the Shanghai Stock Exchange on Tuesday. The sup

The US$1.86 billion multi-year flash deal with unnamed supplier underscores how downstream companies scramble to secure capacity

Under the locked-volume, locked-price arrangement, Biwin would buy enterprise-grade chips in batches from the third quarter of 2026 through the second quarter of 2028, according to a filing with the Shanghai Stock Exchange on Tuesday. The supplier was not disclosed, citing commercial confidentiality.

Biwin’s 2025 revenue of 11.3 billion yuan (US$1.7 billion) is eclipsed by the deal, which is equivalent to 12.6 billion yuan and is far above the threshold that triggers mandatory disclosure under Star Market rules.

The arrangement highlights how Chinese downstream storage firms are responding to the current memory upcycle by locking in upstream supply earlier and for longer periods.

Biwin said the 2026 purchase volume under the contract would amount to 4.45 per cent of its 2025 NAND flash procurement, rising to 14.88 per cent in 2027. Figures for the first half of 2028 were not disclosed.

#artificial intelligence#stock#chip

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