SICC (02631) has recently achieved significant breakthroughs in business expansion. The company announced a cooperation agreement with Toshiba Electronic Components, focusing on technical collaboration to enhance silicon carbide (SiC) power semiconductor characteristics and quality improvement, along with commercial cooperation to expand high-quality stable substrate supply using their collaborative results.

As an established Japanese semiconductor manufacturer, Toshiba Electronic Components' partnership with SICC further demonstrates the company's growing influence in the power semiconductor sector.

This collaboration appears logical given SICC's technical capabilities. In June, SICC received the "Semiconductor Electronic Materials" Gold Award from Japan's authoritative semiconductor publication Electronic Device Industry News, marking the first time a Chinese company has won this award in its 31-year history.

Japan has been a key market for SICC, with the company maintaining sales operations there. Japanese Industrial News previously featured front-page coverage of SICC's bulk supply of SiC substrate materials to the Japanese market, with reports indicating that prominent companies including Sumitomo are among SICC's customers.

According to Japanese Industrial News, Chinese substrate manufacturers led by SICC are attracting increasing numbers of local Japanese and European semiconductor manufacturers with their dual advantages of quality and pricing. This trend is impacting established Japanese companies, as evidenced by ROHM's recent quarterly report showing an over 80% decline in operating profit. ROHM's business executives acknowledged that Chinese manufacturers' SiC substrate technology has reached top-tier levels, stating that without surpassing Chinese competitors in development speed, ROHM would struggle to achieve market success.

Notably, ROHM was previously part of a power chip alliance with Toshiba, with collaboration discussions dating back to 2023. However, their partnership has yet to produce substantial results. Industry analysts attribute this to Japanese companies' typical vertical integration approach, completing entire processes internally, while Chinese companies concentrate resources on specific production stages to enhance efficiency. SICC exemplifies this focused approach in the substrate sector.

Additionally, China's position as the world's largest electric vehicle market provides companies like SICC with advantages for large-scale production and rapid quality improvements based on customer feedback.

The SICC-Toshiba partnership may represent a milestone in SICC's strategy of leveraging domestic innovation to gradually replace international competitors and play a more significant role in the global power semiconductor supply chain.

SICC's overseas expansion extends beyond Japan. The company signed a substrate and ingot supply agreement with German semiconductor manufacturer Infineon in 2023, covering 150mm substrates and ingots while assisting Infineon's transition to 200mm diameter SiC wafers. Infineon indicated the agreement would represent a double-digit percentage of their long-term requirements.

In recent developments, Infineon announced a 50 billion yuan investment to build the world's largest 200mm SiC power semiconductor facility in Malaysia. As a key supplier, SICC is positioned to benefit from Infineon's expanded operations.

SICC's growing client network reflects the company's focus on technical upgrades and capacity expansion, earning global recognition through superior product quality, advanced technology, and comprehensive supply capabilities. Beyond Toshiba and Infineon, SICC's customers include Bosch, ON Semiconductor, and other international semiconductor giants. More than half of the world's top ten power semiconductor device manufacturers maintain close business relationships with SICC.

These clients also serve as primary suppliers for main drive inverters and modules for prominent electric vehicle brands including Tesla, Huawei, Xiaomi, NIO, XPeng, and Li Auto, indicating widespread adoption of SICC's products in the electric vehicle industry.

SiC's superior performance characteristics position it as the "new king" of semiconductors for high-voltage, high-temperature applications across emerging sectors. In data centers, SiC is considered fundamental material for future development. NVIDIA's updated 800V DC power architecture partner directory shows SiC suppliers that are uniformly SICC customers.

AI glasses represent another important SiC application area where SICC has positioned itself strategically. The company signed a strategic cooperation agreement with Sunny Optical's subsidiary Sunny Opotech for collaboration in micro-nano optics and new materials.

As SiC applications expand across more sectors, SICC, as a global leader in SiC substrates, is positioned for broader business relationships with international companies. SICC's growing global influence and development path may provide valuable insights for Chinese hard technology companies expanding internationally.