Collective price hikes in power semiconductors, SAP Advanced receives active institutional research

By Wu Xinzhu Edited by Li Zhuang

Power semiconductor companies are driving a wave of price increases, and as product prices rise, the fundamentals of related companies are expected to continue improving.

Since 2026, a global wave of power semiconductor price hikes has arrived as expected. Starting in February, domestic leaders such as China Resources Microelectronics and Silan Microelectronics took the lead in raising prices, while mainstream products from international giants like Infineon and Texas Instruments saw price increases generally ranging from 10% to 25%. This round of price hikes is not simply a result of cost pass-through but rather stems from profound changes in supply and demand dynamics. On the demand side, the AI infrastructure boom and the strong growth of the new energy industry have jointly ignited an incremental market; on the supply side, the ongoing contraction of global 8-inch wafer capacity, coupled with the encroachment of 12-inch mature process capacity by AI chips, has led to structural shortages in power device capacity. With both volume and prices rising, the power semiconductor industry is poised for a definitive recovery.

At the same time, in emerging application areas, the industrialization of third-generation semiconductor materials represented by silicon carbide and gallium nitride is accelerating, with leading companies in the sector such as SICC (688234.SH) receiving active institutional research.

China Resources Microelectronics, Silan Microelectronics, and others

Power semiconductor companies collectively raise prices

Power semiconductors can be divided into three main categories based on device integration: discrete devices (including modules), power modules, and power chips. Their market size accounts for 8%-10% of the global semiconductor total. Power semiconductors are widely used in foundational electronics fields such as computers, network communications, consumer electronics, automotive electronics, and industrial electronics, benefiting from the rapid development of emerging applications like new energy vehicles and charging stations, data centers, wind and solar power generation, energy storage, intelligent manufacturing equipment, and 5G communications.

Data from market research firm Research and Markets shows that the global power semiconductor market size was approximately $56.87 billion in 2025 and is expected to grow to $78.25 billion by 2031, with an annual compound growth rate of 5.46%.The power semiconductor industry requires high R&D investment, with mainstream manufacturers maintaining significant spending on capacity building, making industry competition intense and placing substantial pressure on product prices. Since some niche segments began to recover in 2024, a turning point emerged in the fourth quarter of 2025, marking a structural recovery. In the first quarter of 2026, both domestic and international manufacturers simultaneously announced price increases.

China Resources Microelectronics raised its product prices starting February 1, 2026, with increases starting at 10%; Silan Microelectronics increased prices for some products by 10% starting March 1; New Clean Energy began raising MOSFET prices on March 1, with increases starting at 10%. Entering the second quarter, overseas leaders successively implemented price hikes. For example, starting April 1, Infineon raised prices for power switches and related chips, with maximum increases reaching 25%, while Texas Instruments' price hikes ranged from 15%-85%. Domestic semiconductor manufacturers such as Jiejie Microelectronics also adjusted their prices accordingly.

Our publication sought confirmation from New Clean Energy on April 8 regarding the company's product price increases and how it views new application scenarios for its power semiconductor products. The company responded, stating that it had issued a product price adjustment notice at the end of February. Regarding application scenarios, the company’s products, supported by strong product capabilities and comprehensive services, are extensively applied in sectors such as new energy vehicles and charging stations, AI servers and data centers, industrial robots, high-end drones, and photovoltaic energy storage. Going forward, the company will further focus on strategic emerging fields.

CR Micro pointed out that the current price increase is not only driven by cost, but fundamentally supported by market prosperity. On the supply side, global 8-inch wafer capacity has decreased rather than increased, and 12-inch mature process capacity has been occupied by AI-related chips, tightening the supply of power devices. Essentially, this reflects the pressure on capacity structure from AI demand. On the demand side, AI is driving data center construction, with significant growth in energy storage demand. Since the second half of 2025, customers have noticeably accelerated their procurement; meanwhile, emerging applications such as smart driving, drones, and robotics are growing rapidly. The industry has generally reached a consensus on price increases, and the semiconductor sector is entering a cyclical recovery.

Yangjie Technology and Silan Micro have shown a notable profit recovery. In the first quarter of 2026, Yangjie Technology expects to achieve a net profit attributable to shareholders of 328 million to 382 million yuan, representing a year-on-year increase of 20% to 40%.The earnings forecast indicates that strong demand from downstream applications such as artificial intelligence, new energy vehicles, energy storage, and industrial control has kept the power semiconductor industry highly prosperous. Specifically, the company’s automotive electronics business has experienced explosive growth, with revenue in the first quarter expected to double year-on-year, forming the core driver of earnings growth. Additionally, the company continues to promote lean production and comprehensive fine-grained management, achieving significant cost reduction and efficiency improvement, with gross margins increasing quarter-on-quarter. The company noted that compared to 2025, customer ordering intentions significantly strengthened in the first quarter of 2026. Overall, the industry is at the early stage of an upturn, entering a new phase characterized by structural high prosperity and expanding demand.

In 2025, Yangjie Technology's revenue increased by 18.18% year-on-year. Semiconductor device revenue amounted to 6.257 billion yuan, accounting for 87.75% of total revenue, with a year-on-year increase of 20.24%. Gross margin was 33.39%, an increase of 1.18 percentage points compared to the same period last year. The company’s main products are divided into three major segments: materials (monocrystalline silicon rods, wafers, epitaxial wafers), wafers (5-inch, 6-inch, 8-inch silicon-based and 6-inch silicon carbide power electronic device chips), and packaged devices (MOSFETs, IGBTs, silicon carbide series, rectifier devices, protection devices, small signal products, and others).

Silan Micro expects to achieve a net profit attributable to shareholders of 330 million to 396 million yuan in 2025, representing a year-on-year increase of 50% to 80%.Silan Micro's Q3 2025 report shows that its subsidiary Silan Integration’s 5-inch and 6-inch chip production lines, Silan Jixin’s 8-inch chip production line, and key associate company Silan Jike’s 12-inch chip production line all operated at full capacity.

Quanyi Securities expects that in 2026, segments such as power and LED could benefit from price increases, leading to a recovery in market conditions. Comprehensive semiconductor product companies adopting the IDM (Integrated Device Manufacturing) model, represented by Silan Micro, will benefit from rising prices in power and analog products, and gain from reduced losses in LED and silicon carbide businesses due to bottom recovery.

Performance divergence

Yangjie Technology plans to expand production.

Profit recovery among A-share power semiconductor companies still varies significantly. Design firms face pressure from rising foundry costs. For example, in 2025, New Clean Energy achieved total operating revenue of 1.877 billion yuan, a year-on-year increase of 2.66%; net profit attributable to shareholders was 394 million yuan, down 9.42% year-on-year. In 2025, the company's main business revenue was 1.87 billion yuan, a year-on-year increase of 2.68%.

In its 2025 annual report, New Clean Energy noted that leading international manufacturers, aiming to consolidate their domestic market positions, actively adjusted their business strategies. On one hand, they accelerated the localization of core technologies; on the other hand, they deepened their domestic market presence through product diversification and collaboration with local enterprises. Domestic competitors, suffering from severe homogenization issues in some mid-to-low-end products, adopted price competition strategies, sacrificing short-term profits for market share, further exacerbating the oversupply in certain sectors and challenging the industry’s profitability and development quality. Additionally, increased utilization rates at upstream foundries led to higher foundry costs for the company. Multiple factors combined resulted in a decline in profitability.

Donghai Securities pointed out that Newclean Energy was the first to emerge from the industry trough in 2024, accumulating a relatively high base for the same period. Coupled with the rise in upstream raw material and wafer foundry costs in 2025, the company's profitability in 2025 is under pressure. Currently, on one hand, downstream sectors such as automotive electronics, energy storage, and servers are witnessing robust demand; on the other hand, AI-driven pressures have led to an overall increase in product prices across the industry, allowing cost increases to be passed on. In the first quarter of 2026, the company implemented a general price hike for MOSFET products while focusing on high-barrier, high value-added products. The company is exploring incremental opportunities in automotive electronics and server markets, with profitability expected to further improve in 2026.

At the same time, power semiconductor companies operating primarily under the IDM model have not fully unlocked their profit potential.For instance, China Resources Microelectronics’ 2025 earnings快报 revealed that the company achieved total operating revenue of approximately 11.054 billion yuan, representing a year-on-year increase of 9.24%; net profit attributable to shareholders amounted to about 661 million yuan, marking a year-on-year decrease of 13.26%. The company noted in its快报 that it actively expanded the market, continuously optimized its product mix, and maintained high capacity utilization, leading to revenue growth. However, depreciation from heavy asset investments, such as the 12-inch production lines in Chongqing and Shenzhen, had a certain impact on the company’s profit metrics.

In a recent institutional survey, China Resources Microelectronics stated that the semiconductor industry is currently experiencing a structural recovery. In the new energy sector, demand from photovoltaics, energy storage, and charging stations continues to grow, with some materials already reaching full capacity.In the automotive electronics sector, as the company expands its product portfolio and autonomous driving technology penetrates further into lower-end models, the per-vehicle chip value continues to rise. New customers and projects brought in last year will enter the mass production phase, remaining a strategic focus and a significant growth driver for the company this year. In consumer electronics, the overall industry performance remains stable, with home appliances achieving year-on-year growth, while mobile phones and PCs saw slight declines, maintaining the company’s basic market position. In industrial equipment, generator sets benefit from grid construction and data center demand, with orders showing quarterly sequential growth. In emerging business areas, demand from AI servers, drones, and robotics is still in a high-growth phase, serving as the company’s core growth engine for the future.

China Resources Microelectronics stated that its 6-inch, 8-inch, and Chongqing 12-inch production lines have been operating at full capacity since the fourth quarter of last year, while the Shenzhen 12-inch line is in a rapid ramp-up phase. Current order visibility extends to the second half of this year, with a significant year-on-year increase in backlog. The company is leveraging the window of tight capacity and rising industry prices to accelerate production line optimization and product mix upgrades, continually strengthening and enhancing the profitability of its core products.

Yangjie Technology, which operates under both the IDM and Fabless (fab-less) models, plans to expand its production capacity.According to company disclosures, its future capital expenditure plan focuses on five key areas: continued investment in the packaging line and wafer fab construction at its Vietnam plant; expansion of its eight-inch wafer production line; ongoing investment in silicon carbide wafer production; expansion of production lines related to automotive business; and the construction of advanced packaging projects.

In its 2025 annual report, Yangjie Technology highlighted that it has been intensifying the promotion of MOSFET, IGBT, and silicon carbide products in automotive electronics, artificial intelligence, industrial, and clean energy markets, with overall orders and shipments increasing rapidly compared to the same period in 2024. Internationally, the company’s first overseas packaging base, MCC (Vietnam) factory, has entered mass production, focusing on the R&D and manufacturing of power devices and small-signal semiconductor packaging products, with current monthly capacity reaching 1.2 billion units. To further enhance its overseas IDM supply chain, the company is investing in the construction of its first overseas automotive-grade six-inch wafer fab in Vietnam, designed for an annual capacity of 2.4 million wafers, with mass production expected by the first quarter of 2027.

The industrialization of third-generation semiconductors is accelerating.

Advanced Technology has received intensive research from institutions

Third-generation semiconductor materials, represented by silicon carbide and gallium nitride wide bandgap semiconductors, are currently experiencing rapid commercial progress. The declining cost of silicon carbide is gradually lowering its application threshold, with penetration accelerating across the new energy vehicle sector, transitioning from a high-end optional feature to a mainstream standard. Additionally, it is expected to gradually replace traditional silicon-based semiconductors in areas such as industrial automation, smart grids, rail transport, and premium home appliances. Gallium nitride products offer advantages like high efficiency, low energy consumption, high frequency, and compact size, enabling broad applications in fast charging for mobile phones, data center power supplies, 5G communication power, servo motors, automotive systems, AI power supply, robotics, and LiDAR, showcasing vast market potential.

Companies such as Yangjie Technology and New Clean Energy have entered the silicon carbide market and are advancing product upgrades.Changjiang Securities pointed out that leading domestic companies have been the first to break through the full-category research and development and pilot verification for 12-inch substrates, with capacity planning rapidly progressing. Meanwhile, overseas leader Wolfspeed has entered bankruptcy restructuring due to sustained heavy losses, accelerating the shift of global supply chain dominance to China. After years of competition, the domestic supply landscape has become clearer.

Changjiang Securities believes that over the past decade, power electronics applications represented by new energy vehicles, photovoltaic inverters, and industrial power supplies have become the core driving force behind the rapid growth of silicon carbide devices. On this basis, with the explosive increase in AI computing demand, silicon carbide’s applications in thermal management and structural functions within advanced packaging are gradually emerging, creating a new growth trajectory that places the entire industry chain in a 'dual-driver' development phase.

Although gallium nitride exhibits weaker thermal conductivity and thermal oxidation performance compared to silicon and silicon carbide, it can achieve low-loss operation in high-voltage scenarios such as data centers and electric vehicles, supporting its rapid penetration across various fields. A subsidiary of China Resources Microelectronics recently launched a new gallium nitride product — the fourth-generation D-mode GaN series. This product can be widely applied in high-growth areas such as AI server power supplies, onboard chargers (OBC), LiDAR, humanoid robot joint drives, and premium fast charging, providing more efficient and compact energy solutions for medium- to high-voltage, high-current, high-frequency, and space- or weight-sensitive application scenarios.

Advanced Technology, a globally leading silicon carbide substrate material enterprise, faced earnings pressure in 2025. During the reporting period, the company achieved total operating revenue of 1.465 billion yuan, representing a year-on-year decrease of 17.15%; net profit attributable to shareholders was -208 million yuan, marking a year-on-year decline of 216.36%. Key metrics such as basic earnings per share, diluted earnings per share, and gross margin all showed varying degrees of decline.

However, institutions remain optimistic about the third-generation semiconductor-related industries. For instance, Advanced Technology has received over 50 institutional research visits in recent years.

In a research report on March 28, Galaxy Securities noted that Advanced Technology's product sales and production volumes increased by 75.33% and 68.31%, respectively, in 2025. The year-on-year decline in revenue was primarily due to a combination of industry stage factors and the company’s active strategic choices, resulting in a temporary reduction in the average selling price of products. The decline in gross margin was mainly driven by a mismatch between phased investments and pricing changes. The variation in net profit margin was largely related to one-time or staged factors such as sales expenditures for expanding into large-diameter markets, R&D investments in emerging application areas, and adjustments to historical tax matters. Looking ahead, as the industry enters a phase of price stabilization, combined with the continued penetration of the company’s higher value-added 8-inch substrates and cost-reduction benefits brought by technological upgrades, profitability is expected to gradually recover.

(This article was published in the April 11 issue of Securities Market Weekly. The mentioned stocks are for illustrative analysis only and should not be considered investment advice.)

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