(Yicai) June 10 -- Shares of Biwin Storage Technology jumped after the Chinese storage module company signed a USD1.8 billion procurement deal to secure a stable supply of enterprise-grade storage chips.

Biwin [SHA: 688525] closed up 3.9 percent at CNY317.00 (USD46.77) in Shanghai today, after earlier gaining as much as 8.9 percent. The stock has surged nearly 177 percent so far this year.

Biwin will buy NAND Flash chips at a locked price and quantity between the third quarter of this year and the second quarter of 2028, the Shenzhen-based company announced yesterday. The procurement volume for 2026 will be equal to about 4.5 percent of the NAND Flash chips it purchased last year, with the ratio for 2027 rising to nearly 15 percent.

Biwin did not disclose the name of the supplier. The main overseas suppliers of NAND Flash storage wafers and chips include Samsung Group, SK Hynix, Kioxia, Micron Technology, and Western Digital.

This procurement agreement allows the company to secure the basic raw materials for the next 24 months in advance, Biwin noted, adding that the overall risk is manageable as the deal aligns with the company’s business scale and planning.

Memory chips are a raw material for storage devices. NAND Flash is the most mainstream storage medium globally, with applications in almost all scenarios that require long-term data storage. Enterprise-grade NAND storage, which is used in artificial intelligence servers, is the core demand driver for NAND Flash.

Against the backdrop of rising demand from the AI industry, the supply of storage chips is expected to remain tight over the next few years. Therefore, signing a locked-in deal can help Biwin stabilize the long-term supply and cost of raw materials.

In March, Biwin signed another long-term supply contract worth USD1.5 billion for NAND Flash storage wafers.

Biwin is an independent semiconductor storage solutions provider. Its revenue surged 69 percent to CNY11.3 billion (USD1.67 billion) last year from the year before, with net profit up over fivefold to CNY853 million (USD126 million), according to the company's 2025 annual report.

Editor: Futura Costaglione