[News] Sino-US Memory Joint Venture, Longsys and Kingston Unite for High-End Embedded Solutions

2023-12-05 Semiconductors TrendForce

On November 27, Kingston, the global leader in memory modules, and Longsys, acclaimed as key memory module maker in China, jointly announced the establishment of a new joint venture company in China. This strategic move aligns with the resurgence in the memory market, with Kingston taking the lead to step into the Chinese market, reported by UDN News.

As per the collaborative plans between Kingston and Longsys, the joint venture will be established in China, with Kingston holding a 51% stake and Longsys holding 49%. The focus is on expanding the Chinese market together. According to Longsys’ press release, the newly formed joint venture will operate independently, specializing in supplying embedded memory products to the Chinese market. Longsys will oversee product development and technical support, while Kingston will manage procurement and brand-related needs. The capital amount of the new company has not been disclosed by either Kingston or Longsys.

Founded in 1987 and headquartered in California, USA, Kingston is a globally renowned memory module product manufacturer. In 2022, it secured the top position in global memory module and solid-state drive module suppliers. Besides, it leads in the embedded storage market share and holds a dominant position as a key supplier to China’s Tier 1 OEM.

On the other hand, Longsys, established in 1999 and headquartered in Shenzhen, China, has emerged as a key player in the industry. In recent years, it acquired competitors such as Lexar in the United States and Smart Modular in Brazil. Longsys primarily focuses on NAND-related applications and is currently listed on the ChiNext board of the Shenzhen Stock Exchange.

In previous press release, TrendForce once mentioned that facing a volatile market in recent years, Chinese homegrown SSD channels are also actively advancing supply chain configurations. Aiming to step beyond China and into international waters, Chinese companies like Longsys is leading the charge by acquiring shares in Licheng Suzhou and Smart Modular to strengthen downstream module production capacity.

Regarding this joint venture, industry source anticipate that the partnership between Kingston and Longsys, with a focus on embedded storage products and NAND-related applications, will drive substantial demand for NAND chip control ICs.

Please note that this article cites information from UDN News

(Image: Longsys)

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