Foreign Giants, Group Buying into Dawei Shares

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Title: Foreign Giants Gather to Buy in

Recent annual reports of listed companies show that storage chip concept stocks Dawei Co., Ltd. received collective buy-ins or increased holdings from five QFII funds including UBS Group, JPMorgan Chase, and BNP Paribas during Q4 last year; another storage chip concept stock, Demingli, also saw significant purchases from UBS Group. Industry insiders believe that as AI technology reshapes storage industry demand logic, domestic storage chip companies are迎来 important development opportunities.

Foreign Giants Concentrate Buying Dawei Co., Ltd.

Choice data shows that in Q4 last year, UBS Group, JPMorgan Chase, BNP Paribas, and Morgan Stanley simultaneously entered the top ten circulating shareholders of Dawei Co., Ltd. UBS Group and JPMorgan Chase held 1.211 million and 1.046 million shares respectively; BNP Paribas and Morgan Stanley held 713,000 and 643,000 shares respectively.

Meanwhile, Barclays Bank increased its holdings of Dawei Co., Ltd. by 836,000 shares in Q4 last year, bringing its total to 1.8 million shares, ranking as the company’s third-largest circulating shareholder. As a result, five of the top ten circulating shareholders of Dawei Co., Ltd. are now QFII funds.

Huajin Securities research report states that Dawei Microelectronics, a wholly owned subsidiary of Dawei Co., Ltd., was established in 2011 and has been continuously investing in the semiconductor storage industry for over ten years. It is a provider of R&D, design, sales, and solutions for semiconductor memory products. Currently, semiconductor storage is one of the company’s重点发展方向, and the company is actively expanding its business.

Another storage chip concept stock, Demingli, also attracted the favor of foreign giants. Data shows that by the end of Q4 last year, UBS Group was among Demingli’s top ten circulating shareholders, holding 1.581 million shares.

Dongguan Securities previously released a research report stating that Demingli is a leading domestic storage industry enterprise with stable upstream and downstream partnerships, significant cost advantages in procurement, and is expected to fully benefit from the upward cycle of the storage industry.

Domestic Storage Companies Welcome Development Opportunities

Since the beginning of this year, the storage chip sector has experienced a strong rally supported by robust industry cycles and performance. Many institutions believe that AI is reshaping storage industry demand logic, and the sector remains in the early to mid-stage of its boom cycle, offering development opportunities for domestic storage companies.

Sheng Jin, Portfolio Director at Huili Group, told Shanghai Securities News that because some international giants are shifting大量产能 to high-bandwidth memory (HBM), the supply of traditional NAND flash has become紧张, leading to a significant increase in prices, which has also substantially improved the fundamentals of excellent domestic storage companies.

“More importantly, when demand for specialized storage like HBM explodes, the overall industry prosperity begins to spread, including the prices of various specialized small storage chips needed for robots and edge devices, which are also rising, driving the industry towards positive development,” Sheng Jin said.

Di Xinghua, fund manager at Guohai Franklin, told Shanghai Securities News that large models are still evolving, especially in enterprise application scenarios where clients have very strict requirements for accuracy and low hallucination rates. Improving model quality is a rigid demand in the industry chain, and storage chips are one of the key directions under this logic.

Di further explained that early AI dialogue tools mainly used conversational interaction, ending once the chat window closed. However, as model capabilities evolve, today’s large models need to remember user commands and preferences from previous days. As interaction frequency and task complexity increase, the contextual information required grows exponentially, making storage infrastructure the foundation for continuous model evolution.

“The storage sector is still in the early to mid-stage of its boom cycle. Although the market is accustomed to viewing the storage industry through traditional cycle perspectives, the structural changes brought by AI are reshaping its demand logic,” Di said.

Author: Wang Peng

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Editor: Song Yafang