GigaDevice Semiconductor's Shanghai-listed Class A shares closed at 276.17 yuan on Friday, marking a 0.6% decline. The stock has experienced significant volatility, trading between 268.20 and 280.43 yuan during the session, yet remains up nearly 99% over the last twelve months.
Memory Market Squeeze Intensifies
The global semiconductor industry is grappling with a severe shortage of memory chips, a critical component for smartphones, personal computers, and servers. This scarcity is driving prices higher across the supply chain. The Semiconductor Industry Association forecasts global chip sales to surpass $1 trillion this year, with memory chip revenue alone projected to jump 34.8% to $223.1 billion in 2025, fueled by soaring artificial intelligence demand.
"This is the biggest question for the industry now," noted Nabila Popal, a senior research director at IDC, highlighting the dilemma for device manufacturers between protecting margins and maintaining stable consumer prices. Apple CEO Tim Cook has acknowledged increased memory costs, though the company has not yet raised iPhone prices.
Upcoming Shareholder Vote and Strategic Position
Investor attention is now turning to a scheduled shareholder meeting on February 11. The agenda includes a vote on proposed caps for related-party transactions and the appointment of an overseas auditor. A company filing disclosed a proposed transaction ceiling of $221 million (approximately 15.47 billion yuan) for the first half of 2026, primarily for purchasing DRAM products from ChangXin Technology Group.
GigaDevice, a major player in non-volatile memory and flash controllers, holds the world's second-largest share in the NOR flash memory market at 18.5%. Its recent Hong Kong listing saw shares surge roughly 40% on the first trading day, reflecting strong investor confidence in China's push for semiconductor self-sufficiency.
While the chip shortage boosts pricing power and potential revenue, it also poses a volume risk. If device makers scale back production instead of passing on higher costs, memory suppliers like GigaDevice could face a rapid downturn. The market will closely watch memory price trends and any new disclosures ahead of the pivotal shareholder vote.
