SICC (ASX: 02631) shares surged over 12% in late trading, finishing the session up 10.53% at HK$93.4, with a turnover of HK$572 million.

The rally is driven by a major industry shift, as Nvidia's push to upgrade data center power architectures to 800V high-voltage direct current is significantly boosting the value and adoption rate of silicon carbide.

According to analysis by Citrini Research, wide-bandgap semiconductors like SiC and GaN account for 64% of the incremental cost in the power conversion bill of materials for every 1MW AI server rack. The SiC market is projected to expand from $3.5 billion in 2024 to $12.4 billion by 2030, with AI infrastructure expected to contribute nearly half of this demand.

Public information confirms that SICC is the dominant leader in China's SiC substrate market. The company has achieved mass supply of 8-inch substrates and was the first globally to introduce 12-inch products, having also indirectly entered Nvidia's supply chain.

Huaxi Securities recently highlighted that with the explosion in demand for AI power supplies, the SiC substrate demand from the AI power sector alone is forecast to approach 70 billion yuan by 2030, representing a near eightfold increase.