Abstract: In the first half of 2019, due to the pressure on global original factories and brand factories, China's demand declined, and in 2020, the balance between supply and demand began to be restored, and the output of China's memory industry in 2022 will be about 3.255 billion pieces, and the demand will be about 3.68 billion pieces. From the perspective of market structure, in China's memory market, DRAM memory accounts for the largest proportion, accounting for 35.33%. The second is mechanical hard disk, accounting for 32.54%, and the third is NRAMFlash memory, accounting for 27.18%.
1. Definitions and Classification
Memory is a device with memory storage function in a computer system, which is responsible for the storage and management of programs and data information. Memory can be divided into primary memory (RAM), secondary memory, read-only memory (ROM), cache memory, virtual memory, etc. In the Chinese market, the mainstream type of memory is flash memory, especially solid-state drive (SolidStateDrive, SSD), which is a kind of auxiliary memory, which is popular among users for its fast speed, strong durability, small size, low noise, low power consumption, high reliability, etc., although SSD has advantages in performance and other aspects, but compared with HDD, the cost of SSD is still relatively high. Therefore, in the case of large capacity needs and limited budget, some users may still choose traditional HDDs.
Second, the business model
1. Vertical integration model
Chinese memory companies usually adopt a vertical integration model, covering the entire industrial chain from raw material procurement, wafer manufacturing, packaging and testing to sales. This model helps enterprises to better control product quality and production costs, and improve operational efficiency. However, the vertical integration model requires companies to have strong financial and resource strength to cope with market fluctuations and industrial changes.
2. Open innovation model
In order to quickly improve the technical level, some Chinese memory companies choose to cooperate with international leading enterprises and adopt an open innovation model. By cooperating with international giants, enterprises can obtain advanced technical support and market channels, while reducing the risk and cost of independent research and development. However, the open innovation model requires enterprises to have strong technology absorption and innovation capabilities to achieve technological breakthroughs and independent controllability.
3. Platform-based business model
With the rapid development of the Internet and e-commerce, some Chinese memory companies have begun to adopt a platform-based business model to provide memory products and solutions by building e-commerce platforms or cloud service platforms. Platform-based business models help companies expand market share, reduce marketing costs, and enable rapid engagement with customers. However, a platform-based business model requires enterprises to have strong brand influence and ecosystem building capabilities.
3. Industry policy
In 2021, the Cyberspace Administration of China issued the "Digital China Development Report (2020)", the mainland continued to maintain its advantages, the number of supercomputers accounted for 45%, and the gap between domestic central processing units and memory and foreign advanced levels narrowed. The memory industry in China is progressing, gradually catching up with and surpassing developed countries. In 2023, the Central Committee of the Communist Party of China and the State Council issued the "Overall Layout Plan for the Construction of Digital China", which proposes to systematically optimize the layout of computing infrastructure, promote the efficient complementarity and collaborative linkage of computing power in the east and west, and guide the reasonable echelon layout of general data centers, supercomputing centers, intelligent computing centers, and edge data centers. Accelerate the development of China's memory industry.
Fourth, industry barriers
1. Technical barriers
The memory industry is a technology-intensive industry, which requires a high degree of technology accumulation and innovation capabilities. Chinese companies are relatively backward in technology, especially in the field of high-end memory, and there is a big gap with international leading enterprises. As a result, Chinese companies face many difficulties in R&D, production, packaging and testing, and it is difficult to compete with international giants.
2. Financial barriers
The memory industry is a capital-intensive industry that requires a large capital investment. From equipment procurement, plant construction, R&D to marketing, all aspects require a lot of financial support. Chinese enterprises are relatively weak in terms of financial strength, and it is difficult to bear high capital expenditures, which limits their development space to a certain extent.
3. Talent barriers
The memory industry needs high-quality talent support, including technology research and development, production management, marketing and other talents. China's talent pool in the field of memory is relatively small, especially high-end talents are even more scarce. As a result, Chinese enterprises are facing great challenges in attracting and cultivating talents, and it is difficult to meet the needs of business development.
Fifth, the industrial chain
The industrial chain structure of the memory industry is relatively clear, and the upstream is composed of printed circuit integration, wireless radio frequency parts, capacitors, resistors, chips, digital integrated circuits, etc.; the middle of the industrial chain is the memory manufacturer, and the main domestic manufacturers are high-quality enterprises such as Inspur Information, Sugon, Aishu, Huawei; and the downstream of the industrial chain is the reference field of memory, mainly for household appliances, medical equipment products, daily electronic products, network service equipment, media storage devices, computer accessories and other fields.
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