SICC (02631) surged more than 7% in afternoon trading, with gains narrowing to 5.95% at the time of writing, reaching HK$57 and recording a turnover of HK$223 million.

The rally follows recent developments in the AI hardware sector. On November 27, Alibaba officially launched its flagship AI wearable—the Quark AI Glasses S1. This year, Meta has introduced multiple AI glasses, including the Oakley MetaVanguard and Meta Ray-Ban Display, while Google is accelerating its AI glasses project, targeting a Q4 2026 release.

Silicon carbide (SiC) substrates are gaining traction in emerging applications like AR glasses, driving growth expectations. As a leader in the SiC semiconductor materials industry, SICC has achieved breakthroughs in 12-inch SiC substrate technology, ushering the sector into the 12-inch era.

A research report from Minmetals Securities noted that current capacity suggests a tight supply-demand balance for SiC substrates by 2027. If AR glasses adoption or AI thermal material advancements exceed expectations, supply shortages could emerge.