SICC (02631) surged over 7% during intraday trading before retreating to a 4.66% gain, currently trading at HK$67.40 with a turnover of HK$126 million.

Since July, more than 20 global power semiconductor companies have collectively initiated their second round of price hikes this year, with increases ranging from 10% to 25%. These price adjustments cover the entire spectrum of silicon-based MOSFET/IGBT, SiC, and GaN products.

Haitong International noted that SiC primarily targets high-voltage scenarios on the data center side. The core contradiction in the current industry is structural divergence: high-yield 8-inch SiC wafers remain in short supply, and procurement cycles for automotive-grade SiC MOSFETs continue to be extended. However, standard 6-inch SiC has already experienced oversupply, with price wars accelerating SiC price declines.

A research report from Soochow Securities Hong Kong indicated that by the first quarter of 2026, with the rapid ramp-up of 8-inch products, SICC's gross margin is expected to recover to nearly 20%. Revenue from 8-inch products has already increased to approximately 45% of total revenue, marking a significant improvement in profitability compared to 2025.

Entering the second quarter of 2026, the company has already proposed price increase requests to some customers for new orders beyond existing production capacity and for rush orders. As supply-demand dynamics continue to optimize, product mix improves, and 8-inch capacity is released, the company's earnings recovery is expected to be further realized.