Morgan Stanley is bullish on NOR Flash Q2 quotation, which is up 30% month-on-month. Demand expansion and capacity shortage is the main reason.

Recently, Morgan Stanley re-issued a research report that 5G, electric vehicles, medical and other downstream market demand warming, promoting NOR Flash prices continue to rise. The latest survey shows that chip suppliers have agreed with customers on Q2 quotations, an increase of 15-30% over Q1 this year. Although the price of Q3 has not been finalized, under the global core shortage tide, the price is expected to rise by more than 10%.

In addition, the report shows that due to the shadow of Samsung's Austin plant shutdown in the United States is still urgent in, NOR Flash inventory, has fallen to less than two weeks, is expected to fully recover in June.

Under the tight production capacity, a number of manufacturers sounded the alarm. Zhaoyi Innovation, Wang Hong, Huabang Power and other industry leaders have repeatedly mentioned that it is difficult to release production capacity in the short term, and there may be frequent news of, NOR Flash price increases for two years.

However, the price increase will not stop customers from placing orders.

With the shortage of wafers on the supply side and increased panic in the industry, the downstream demand side has become more and more active in seeking production capacity, and many customers have placed more orders in advance. Wang Hong even ushered in a "big deal" of issuing orders three times as much, pushing up industry prices.

In addition, the, NOR Flash demand market covers TWS headphones, smartwatches and bracelets, AR/VR, AMOLED, TDDI, 5G and other fields, the rapid development of the industry is bound to bring a burst of demand, will also support the chip Q3 rise.

Capacity tension superimposed downstream demand for better, NOR Flash in the price boom cycle, related enterprises are expected to benefit.

Zhaoyi Innovation recently released an annual report showing that the company's revenue last year increased by 40.4% compared with the same period last year, and its net profit increased by 45.11% compared with the same period last year. This year, Huahong Semiconductor Factory is actively expanding production, its production capacity is rising, and its market share has reached the third industry analysis in the world. With the rise in volume and price, the NOR Flash performance of Zhaoyi Innovation for 21 years is expected to achieve rapid growth.

In addition, some new forces in NOR Flash are beginning to emerge. For example, Burson Technology has relevant high-end technology; Zhongtian Hongyu has successfully completed 4F2 NOR Flash technology research and development; Puren Semiconductor has completed 55nm NOR Flash research and development.