On the evening of September 28, GigaDevice (603986.SH) announced that its board approved an increase in the 2026 daily related-party transaction quota and estimated the quota with ChangXin Group for January–April 2027. The company plans to add 2.143 billion yuan to its 2026 quota, raising the full-year total to 7.854 billion yuan. It also estimates 4.411 billion yuan for January–April 2027. The proposal still needs shareholder approval.
GigaDevice said the increase is directly driven by rising DRAM foundry prices. The company buys own-brand DRAM foundry services from ChangXin Group, and higher foundry pricing has pushed procurement costs up, making the original 5.711 billion yuan budget insufficient. From January to August 2026, related-party transactions with ChangXin reached 3.596 billion yuan, or 63% of the original budget. At the current pace, full-year procurement will exceed the original estimate.
The company cited two reasons for the 4.411 billion yuan estimate for January–April 2027: continued DRAM foundry price increases and growing foundry demand from niche DRAM and customized storage products. Based on that quarterly estimate, full-year 2027 related-party transactions with ChangXin could approach or exceed 13 billion yuan, up sharply from 2026.
As a domestic Fabless memory maker, GigaDevice counts DRAM as a core business. Since 2021, it has launched DDR4, DDR3, and LPDDR4X niche DRAM products, using an asset-light model with external foundry manufacturing. ChangXin Group is one of the few domestic DRAM IDM companies and provides foundry capacity for GigaDevice's niche DRAM business, complementing both sides' product portfolios.
GigaDevice said DRAM foundry pricing follows fair principles and is negotiated based on market conditions. Independent directors view the transactions as normal business needs that will not affect the listed company's independence or harm the company and minority shareholders.
ICgoodFind: Rising DRAM prices are driving foundry costs up. GigaDevice has raised its ChangXin Group procurement budget as niche DRAM capacity expands, deepening cooperation in China's memory supply chain.
