Biwin Storage Secures $1.5 Billion Wafer Purchase Deal, Locking in Two-Year Supply

Shenzhen Biwin Storage Technology Co., Ltd. (688525) announced on March 25 that it has entered into a daily operational procurement contract with a certain storage original equipment manufacturer, with a total committed purchase amount of $1.5 billion over a 24-month period.

According to the announcement, the procurement involves specific storage wafers, with the contract stipulating that purchases will be evenly distributed across eight quarters from the second quarter of 2026 to the first quarter of 2028, at locked-in unit prices. The contract value exceeds 50% of the company’s audited revenue and total assets from the previous fiscal year, meeting the disclosure standards for a major contract.

Biwin Storage stated in the announcement that storage wafers are a core raw material for the company, and their supply stability and price fluctuations directly impact production and operations. The signing of this contract helps the company secure medium- to long-term wafer supply resources, mitigating the impact of significant market price volatility on costs, thereby supporting steady business development.

In terms of execution, the contract covers eight quarters from 2026 to 2028, with relatively balanced purchase amounts per quarter. The locked-in pricing mechanism ensures that regardless of market price fluctuations over the two-year period, the company will procure at agreed-upon prices, helping to stabilize raw material cost volatility.

Biwin Storage emphasized that this contract aids in securing long-term wafer supply and reducing cost volatility risks. The company also noted that while uncertainties such as macroeconomic fluctuations and industry cycle changes may arise during contract execution, overall risks remain manageable.