According to a research report from CITIC Securities, the ongoing upturn in the memory cycle is being propelled by a combination of supply optimization and burgeoning AI demand. Memory producers are now prioritizing high-margin products, curtailing the supply of mainstream memory offerings, and consequently, driving prices upward at a brisk pace. Data from Bloomberg reveals that the peak spot price surge for mainstream DRAM and NAND chips soared by 223%, a trend that persisted for 12 to 18 months.
Echoing the dynamics of the memory cycle, the current demand surge for electronic fabrics is predominantly fueled by AI applications, showcasing even more robust growth and sustainability. AI's voracious appetite for specialty electronic fabrics is particularly noteworthy. Amidst this super cycle, the price of 7628 electronic fabric is anticipated to ascend to unprecedented heights.
Taking into account the meteoric rise in AI demand, the research report forecasts a staggering 100% increase in the demand for specialty fabrics by 2026. Given the constrained production capacity of Toyota looms, a scarcity of specialty electronic fabrics is expected to emerge in 2026. Spurred by the allure of marginal profits, companies are poised to proactively shift their production focus towards specialty fabrics.