Bild: IT services EU / Pexels · Pexels · Pexels Lizenz: kostenlos nutzbar, Attribution freiwilligAs Tom’s Hardware reports (https://www.tomshardware.com/tech-industry/chinese-memory-and-storage-firm-expected-to-post-more-than-60-000-percent-jump-in-profits-due-to-exploding-demand-lexar-owner-longsys-forecasts-nearly-usd1-5-billion-profit-for-1h26-compared-to-usd2-1-million-last-year), the Chinese memory manufacturer Longsys is experiencing an unprecedented profit surge. The company, which owns the well-known brand Lexar among others, expects a net profit of around 1.5 billion US dollars for the first half of 2026. Compared to the same period last year, when only 2.1 million US dollars were generated, this corresponds to growth of over 60,000 percent.
Drivers of Profit Increase: AI and Chip Shortage
The dramatic rise in profits is closely linked to the explosive demand for memory products amid the global AI revolution. Artificial intelligence, machine learning, and data-intensive applications require enormous amounts of fast and reliable memory. At the same time, the global chip shortage worsened, limiting the availability of memory chips and driving prices up.
Longsys was able to benefit from this market situation by ramping up production and increasingly supplying its memory solutions, including DRAM modules and flash memory, to manufacturers of AI hardware and data centers. The strong demand for Lexar products in the consumer sector, such as for gaming and professional photography, also contributed to revenue growth.
Significance for the Memory Industry
Longsys’ success underscores the growing importance of Chinese manufacturers in the global memory and storage segment. While traditional market leaders from Japan, South Korea, and the USA continue to dominate, companies like Longsys show that with aggressive investments and strategic partnerships, they can increasingly gain market share.