On October 8, GIGADEVICE fell 3.11% in regular trading, with turnover reaching 195 million HKD, as the storage semiconductor sector faced dual pressures from rising foundry costs and capacity expansion expectations.

The decline comes despite the company's recent upward revision of its 2026 related-party transaction limit with ChangXin Group from 5.711 billion yuan to 7.854 billion yuan, reflecting increased DRAM foundry demand. However, rising foundry costs and expansion plans are simultaneously compressing valuations, dragging down sector peers including Montage Technology and Jiangbolong.

Market concerns center on intensifying competition in the storage sector, with reports indicating Taiwanese manufacturer Nanya Technology has notified customers of further DRAM contract price increases of up to 20%. Additionally, ChangXin Technology disclosed plans for research and development projects along with a second-phase memory wafer backend testing base, with combined investments totaling 34.9 billion yuan, fueling supply expansion worries.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)