The market for third-generation semiconductors opened strong and climbed higher at the start of trading on June 29th. Galaxy Microelectronics Co., Ltd. surged 20% to hit the daily limit, while Macroblock, Inc. also made a strong push towards a limit-up. Nexperia (Nanjing) Co., Ltd., Shenzhen Kaifa Technology Co., Ltd., H&T Intelligent Control Co., Ltd., and Hailu Heavy Industry Co., Ltd. all firmly hit their limit-up boards. Jinhong Gas Co., Ltd. and Guangzhi Technology Co., Ltd. gained over 10%, with Yangjie Technology Co., Ltd., China Resources Microelectronics Limited, Hangzhou Silan Microelectronics Co., Ltd., Starpower Semiconductor Ltd., and numerous other stocks following the upward trend.
Key Drivers Behind the Market Momentum
The surge is driven by booming demand from AI data centers and photovoltaic energy storage, propelling the global power semiconductor industry into a new cycle of simultaneous volume and price growth.
Robust Demand in the Power Semiconductor Market
Reports indicate that due to sustained and significant demand from downstream AI computing power, new energy vehicles, and energy storage, the supply-demand balance in the power semiconductor market remains tight. A manager at a power semiconductor firm in Anhui province revealed that since the fourth quarter of last year, the factory has been operating on two shifts, yet it still cannot meet the current robust market demand. Orders currently received are scheduled for production four to five months out based on the production line schedule.
An executive at a power semiconductor distribution company noted that lead times for mainstream power semiconductors have generally extended to over 30 weeks, with some high-voltage devices even longer. The sales side has shifted from a situation of "price increases" to one where "price hikes and shortages" coexist, and a state of "allocation" has begun to appear.
Another report quoted a representative from a power semiconductor manufacturer stating that products for data centers, such as 800V HVDC primary power supplies and server secondary power supplies, have already entered the supply chains of several leading clients and achieved volume production. Orders for AI-related power supplies are "overwhelming" and "simply cannot be handled."
Industry insiders believe that due to continued cuts in 8-inch mature process capacity by major foundries like TSMC and Samsung, 8-inch wafer capacity remains tight. Under the combined influence of multiple factors on both supply and demand, the tight situation in the power semiconductor industry is unlikely to ease in the short term.
Industry Initiates New Round of Price Increases
Recently, leading domestic power device company Yangjie Technology Co., Ltd. issued a new price adjustment notice. Citing continuous price increases across upstream chip wafers, bulk metals, and packaging materials, with cost growth exceeding expectations, the company decided to adjust prices for its entire product line by 10% to 15%, effective for shipments starting July 1st.
Macroblock, Inc. stated via an interactive platform on June 26th that it had recently issued a second round of product price increase notices to relevant customers. The price adjustments cover IGBT single devices and modules, rectifier bridges, and MOSFET devices.
Beyond these two companies, several power semiconductor manufacturers have issued price hike notices this year. China Resources Microelectronics Limited led the way in February with a price increase for its full product line, starting at 10%. Companies including Hangzhou Silan Microelectronics Co., Ltd., Nexperia (Nanjing) Co., Ltd., Jiejie Microelectronics Co., Ltd., and Lion Microelectronics Co., Ltd. have all announced price increases for all or part of their power device product lines, with typical hikes ranging from 10% to 20%.
Power Semiconductors Enter a New AI-Driven Cycle
Power semiconductors are core components for power conversion and circuit control, widely used in power electronics. Analysis suggests that AI data centers are taking over from new energy vehicles as the core pricing driver for a new three-year upward cycle in power semiconductors.
Market research forecasts the global power semiconductor market size to grow from $28.9 billion in 2025 to $43.3 billion in 2030, with the AI data center-related segment potentially reaching $10.6 billion, accounting for nearly a quarter. The compound annual growth rates for SiC and GaN in data centers are projected at 29.5% and 46.3%, respectively.
A recent securities report points out that as AI clusters' demand for electricity surges, power semiconductors become key to ensuring stable power transmission and management. It suggests focusing on the power semiconductor recovery cycle driven by AI and power management demand. Domestic power device manufacturers developing and mass-producing 1200V SiC/MOS products compatible with Nvidia's 800V DC high-voltage architecture are expected to benefit first. Companies to watch include Lion Microelectronics Co., Ltd., Yangjie Technology Co., Ltd., Hangzhou Silan Microelectronics Co., Ltd., Starpower Semiconductor Ltd., and Nexperia (Nanjing) Co., Ltd..
High Growth Potential for Related Stocks
Market data shows that approximately a hundred A-share companies are currently involved in the third-generation semiconductor theme, with a combined market capitalization exceeding 4 trillion yuan. NAURA Technology Group Co., Ltd. and Yangtze Optical Fibre and Cable Joint Stock Limited Company lead in size, with five other companies, including Han's Laser Technology Industry Group Co., Ltd., Yandong Microelectronics Co., Ltd., China Resources Microelectronics Limited, and Tongfu Microelectronics Co., Ltd., each having a market cap over 100 billion yuan.
Year-to-date, about three-quarters of third-generation semiconductor theme stocks have seen share price increases. Thirty-one stocks, including Guangzhi Technology Co., Ltd., Jiangsu Jiangfeng Electronic Co., Ltd., Huifeng Diamond Co., Ltd., Nexperia (Nanjing) Co., Ltd., and Feikai Materials Co., Ltd., have doubled in price, with Guangzhi Technology Co., Ltd. leading the sector with a gain of over 4.5 times.
Since June, about 65% of the theme stocks have continued their upward trend. Xuguang Electronics Co., Ltd. and Huifeng Diamond Co., Ltd. have skyrocketed over 100% this month. Guangzhi Technology Co., Ltd., Jiangsu Jiangfeng Electronic Co., Ltd., Feikai Materials Co., Ltd., Jinbo Holding Co., Ltd., Guangdong Huate Gas Co., Ltd., and Fuman Microelectronics Co., Ltd. have all gained over 50%. Six stocks, including Jingyuntong Technology Co., Ltd. and Saiwei Electronics Co., Ltd., have declined over 20%.
From a capital flow perspective, as many as 61 third-generation semiconductor theme stocks attracted margin trading interest this month, with 42 seeing net margin buying exceeding 100 million yuan. Han's Laser Technology Industry Group Co., Ltd. saw significant margin buying of 4.5 billion yuan. Yunnan Chihong Zinc & Germanium Co., Ltd. and Jiangsu Jiangfeng Electronic Co., Ltd. also attracted over 2.5 billion yuan each. Shenzhen Kaifa Technology Co., Ltd., Tongfu Microelectronics Co., Ltd., Feikai Materials Co., Ltd., and Yangtze Optical Fibre and Cable Joint Stock Limited Company all had net margin buying exceeding 1 billion yuan. Eight other stocks, including Xuguang Electronics Co., Ltd., Goke Microelectronics Co., Ltd., Yangjie Technology Co., Ltd., and Zhongci Electronic Co., Ltd., received over 500 million yuan in net margin buying.
Regarding future growth potential, based on consensus forecasts from three or more institutions, 13 third-generation semiconductor theme stocks are expected to see their earnings at least double this year. Institutions forecast Yunnan Chihong Zinc & Germanium Co., Ltd.'s net profit could surge over 12 times year-over-year. Projected net profit growth for Yangtze Optical Fibre and Cable Joint Stock Limited Company and Megmeet Electrical Co., Ltd. is around 8 times and 5.3 times, respectively. Four other stocks, including Kechuang New Material Co., Ltd., Hongyuan Green Energy Co., Ltd., and Lion Microelectronics Co., Ltd., are all expected to achieve earnings growth exceeding 2.7 times.
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