Did Taiwan's memory chip manufacturers plummet solely because of Changxin Storage's price cuts? Morgan Stanley's report refutes Taiwanese media reports, and Winbond remains the top choice

Recently, multiple Taiwanese media outlets have extensively reported that “China’s Changxin Storage (CXMT) slashes DDR4 prices, old-generation memory may crash,” causing market panic and a sharp decline in Taiwanese memory stocks. However, the foreign investment community quickly responded with a reversal. Morgan Stanley’s latest research report directly pointed out that the related reports are incorrect, providing a swift clarification of key facts to the market.

Changxin Storage Major Customer Financials: DRAM Purchase Prices Not Falling but Rising

Morgan Stanley noted that the media’s claim of “DDR4 sold at low prices” is logically and factually unfounded. The most critical difference is that Changxin Storage (CXMT) no longer sells any of its own branded DDR4 products. CXMT’s business model has shifted to a foundry operation, mainly producing DRAM for IC design companies, rather than competing in the market with branded finished products.

The report further revealed that CXMT’s current core customer is GigaDevice. Recent preliminary financial data from GigaDevice shows that in the first half of 2026, their DRAM procurement prices from CXMT have not decreased but increased. In other words, if even the costs for domestic Chinese customers are rising, the widely circulated rumor of “price cutting and dumping” naturally cannot be true.

Morgan Stanley Disputes CXMT Price-Cutting Claims, Reaffirms Winbond as Top Pick

Given the reality of limited advanced process equipment, China’s DRAM capacity is already highly scarce—“not enough even for self-use, let alone room for price wars.” Even if there are policy-driven resource allocations, they are more likely to supply specific systems rather than sell extensively to the global market. Based on these judgments, Morgan Stanley maintains a cautiously optimistic stance on the old-generation memory industry and reiterates Winbond (2344) as its top pick among Taiwanese stocks.

This article, “Taiwan Memory Manufacturers’ Plunge Caused Entirely by Changxin Storage’s Price Cuts? Morgan Stanley Report Disputes Taiwanese Media, Reaffirms Winbond as Top Pick,” first appeared on Chain News ABMedia.