Chinese chips, even with a tenfold price increase, are still not selling fast enough.

Thanks to price advantages and a stable supply, Chinese chip manufacturers are reaping huge profits as the official market shifts heavily in favor of buyers.

Chip manufacturers are benefiting greatly from the AI ​​boom. Photo: Straits Times .

According to news from Kuai Technology on May 31st, the global memory chip market experienced a severe supply-demand imbalance in the first quarter of 2026, leading to unprecedented price increases. Specifically, the spot price of some memory chips surged by nearly 1,000% compared to the same period last year.

According to the report, thanks to their impressive performance-to-price ratio and stable supply, domestically produced Chinese memory chips have become highly sought-after items in the international market.

Numerous foreign distributors and system integrators have proactively sought collaboration, leading to a continuous stream of large-scale orders.

According to data from Chinese customs authorities, China's integrated circuit (IC) exports in the first quarter of 2026 reached US$72.47 billion , a 77.5% increase year-on-year. Notably, memory chip storage device exports contributed US$45.99 billion , marking a 174.2% growth and accounting for 63.3% of the total IC export value.

Many storage equipment exporting companies in Shenzhen report that they have now completely shifted to a "seller-centric market." International customers must proactively seek them out to negotiate, helping these companies triple their export value in the first quarter of the year compared to the same period last year.

The cause behind this "price surge" is the strain on the global supply and demand balance. The explosion in demand for artificial intelligence (AI) servers has led to a significant increase in memory capacity per server compared to traditional servers.

Meanwhile, original equipment manufacturers (OEMs) have shifted 80-90% of their advanced manufacturing capacity to specialized memory chips for AI, resulting in a contraction in capacity for mainstream memory chips and pushing inventory levels to historically lows.

At the same time, China's domestic memory chip industry is undergoing a major upgrade, significantly narrowing the technology gap.

The price difference between domestic and international brands creates a significant competitive advantage. Combined with stable, unleashed production capacity, these factors are becoming a solid foundation, sustaining high export growth for China's semiconductor industry.

Source: https://znews.vn/chip-trung-quoc-tang-10-lan-van-khong-du-ban-post1655893.html