Analyst: Chip prices may peak ahead of schedule within 1 year, with DRAM and NAND prices potentially experiencing consecutive quarters of decline early next year.

Recently, a listed company signed a long-term contract for billions of wafers, disclosing that the order is "locked in terms of quantity and price". With the persistent imbalance of supply and demand in the storage market, signing long-term contracts has become an important method for downstream manufacturers to ensure product supply. JPMorgan recently released a research report introducing several models of LTA contracts. The first type is pure fixed price with no advance payment, which can be cancelled by either party in the event of severe market volatility; the second type is fixed price + advance payment, with the contract price usually lower than the first type; the third type is advance payment + price flexibility mechanism, with most of the quantity using fixed prices, but leaving a portion to adopt a floating price mechanism. Against the backdrop of Longxin and Changcun actively expanding production, the increase in prices leading to a decline in demand for consumer electronics, analyst Carl Ackman from Raymond James poses a new perspective: chip prices may peak in less than 12 months, with dynamic random access memory and flash memory prices possibly experiencing continuous decline in the early part of next year.