According to the latest report from Morgan Stanley, the memory industry is ushering in a wave of strong growth dynamics, with Winbond's multiple key product lines, including DDR4, SLC NAND and NOR Flash, expected to benefit significantly from this wave of market trends, welcomes affordable prices and better profit performance.

The report stated that for DDR4 products, the current market still has an underestimation of its potential for "super-cycle". Huafen Electric is expected to benefit from the strong performance of DDR4, especially in the next three quarters, where the market will face a supply shortage of 10-15%. Therefore, the price increase may be steeper than originally expected.

It is worth noting that DRAM suppliers have begun signing strategic contracts with major customers, and the price is even 200% higher than the price set at the beginning of the third quarter of Huafen Electric. In addition, the report also mentioned that the demand for server DDR configuration and consumer demand may be underestimated. Due to these factors, Morgan Stanley predicts that the price of DDR4 products of Huabon Electric will soon see a high two-digit increase.

Secondly, in terms of SLC NAND, its price is expected to show an intentional upward space. In the past few years, the supply and demand situation of SLC NAND has been relatively stable. However, major suppliers including Kioxia, Hynix and Micron have all planned to reduce their supply by 2025. Not only that, Samsung Electronics has also reduced the supply of MLC NAND in the third season. With the assumption that the demand for equipment remains stable, the reduction in these supply is likely to lead to a double-digit supply shortage. So, this means that the price of SLC NAND will easily have a two-digit growth, and is likely to start this month.

Finally, in terms of NOR Flash, considering the increase in backend costs, the increase in price seems to be an inevitable trend. Moreover, Chinese suppliers will increase their price in the third quarter to increase their price by 5-10% from the start of the fourth quarter. Moreover, the magnitude of this price may be higher than previous expectations and will be more sustained. This is mainly due to the increased material cost and the limitations of backend capacity support. One obvious example is Kyoto Power, which further promotes NOR Flash’s supply tightening, thereby pushing prices to increase prices as the company expands its development in graphics processing unit (GPU) business.

Based on the development pace of the above product gold period, the subsequent product price situation will be inevitable. This also led to Morgan Stanley's investment evaluation of "better than the big market" in its report, with a target price of NT$30 per share.