SICC (02631) rose nearly 6% in morning trading. At the time of writing, the stock was up 5% to HK$60.9, with a turnover of HK$53.134 million. A research report from Goldman Sachs noted that increasing energy efficiency demands from AI data centers are becoming a new core driver for silicon carbide (SiC) applications. SiC can be used in 800V high-voltage direct current (HVDC) systems, power supply units (PSUs), baseband units (BBUs), and advanced packaging. It offers advantages such as higher energy conversion efficiency, improved heat dissipation, higher power density, and smaller size, aligning with the growing computational needs of GPUs. Additionally, performance upgrades and weight reduction requirements in AI glasses, along with existing demand for fast-charging in electric vehicles, form three major growth engines. Goldman Sachs views SICC as a global leader in semi-insulating SiC substrates, being the first to introduce a 12-inch SiC substrate. The company has made early investments in liquid-phase epitaxy (LPE) technology, combined with vapor-phase methods, and designs its own crystal growth furnaces while continuously increasing SiC ingot thickness. SICC's product quality is a significant advantage, enabling higher yields for customers producing SiC devices and supporting product premium pricing. The company is mitigating the impact of declining substrate prices through rapid cost reductions and has proactively lowered prices for 8-inch SiC substrates to capture market share and safeguard profitability.