On November 17, SMIC revealed in its investor relations activity log that the current robust demand within the AI sector has consumed a substantial portion of production capacity. This has led mainstream suppliers to progressively exit from fragmented and low-volume niche markets. Such a shift has paved the way for significant opportunities for a multitude of small and medium-sized suppliers, many of whom are SMIC's clientele. The company is persistently ramping up its investment in this domain and has successfully clinched related orders, encompassing those for memory products. Given the market dynamics of the memory sector, even slight fluctuations in supply and demand can trigger substantial price variations. Based on SMIC's insights, a mere 5% shortage or surplus in memory supply could result in a price doubling or halving. Presently, the industry is grappling with a supply shortfall, and it is anticipated that elevated price levels will endure. Furthermore, products like NOR Flash, NAND Flash, and MCUs entail lengthy validation cycles and are challenging to substitute. Even if new manufacturers endeavor to penetrate the market, the journey from tape-out to large-scale mass production will span at least 16 months. Consequently, the market positions of incumbent suppliers are poised to remain stable for the foreseeable future, resisting rapid replacement.