SICC (02631) has released its interim results for the six months ended June 30, 2026, with revenue reaching RMB 914 million, a 15.10% increase year-on-year, and a gross margin of 22.86%. As new energy vehicles accelerate their transition to high-voltage platforms and AI computing infrastructure continues to expand, the value of silicon carbide across downstream applications is becoming increasingly prominent, with market penetration steadily climbing.
During the reporting period, the company saw steady growth in both production and sales volumes, with revenue rising on both a year-on-year and quarter-on-quarter basis. Leveraging its market-leading position in large-diameter silicon carbide substrates, combined with ongoing cost-reduction and efficiency-enhancement measures, coupled with recovering downstream demand that has helped stabilize product pricing, the company's gross margin improved.
On a quarterly basis, SICC achieved revenue of RMB 548 million in the second quarter of 2026, a historic high for a single quarter, representing a 42.06% increase year-on-year and a 49.97% increase quarter-on-quarter. The quarterly gross margin stood at 25.36%, with net profit attributable to shareholders of the listed company reaching RMB 1.893 million for the quarter.
Larger-diameter substrates represent one of the core directions for cost reduction, efficiency gains, and expanded applications in the silicon carbide substrate industry, and also served as a key internal driver of the company's operational improvements in the first half of 2026. During the reporting period, SICC aligned with the industry's transition from 6-inch to 8-inch wafers while strategically positioning itself for 12-inch products, establishing a clear product ladder: stable supply of 6-inch, accelerating volume shipment of 8-inch, and continued breakthroughs in 12-inch.
The 8-inch products have progressively moved from a phase of technological leadership toward mainstream adoption, with revenue contribution from 8-inch products now exceeding 50% of the company's core business. According to data from Fuji Keizai, SICC captured a 51.3% global market share in 8-inch conductive silicon carbide substrates in 2025, ranking first worldwide.
In terms of even larger diameters, the company launched the industry's first 12-inch silicon carbide substrate in November 2024 and completed technical breakthroughs across the full 12-inch product line—including conductive N-type, conductive P-type, and semi-insulating variants—in the first quarter of 2025. The 12-inch products have now secured orders from leading customers, signaling that SICC is already at the forefront of the industry in next-generation large-diameter substrates.
The significance of 12-inch technology extends beyond mere demonstration. Mass production of 12-inch wafers will enable the successful commercialization of numerous emerging sectors, allowing SiC to function as an advanced platform material that further reduces unit costs across various industries while unlocking substantially larger-scale commercial opportunities.
In the first half of 2026, the company's R&D expenses totaled RMB 74.5744 million, remaining essentially flat compared to the same period last year. R&D investment has been directed toward 12-inch silicon carbide substrates, yield improvement and cost reduction for 8-inch substrates, P-type substrates, and development in emerging fields such as optics and advanced packaging. Despite a challenging industry environment, SICC has maintained its R&D commitment rather than curtailing investment, continuing to strengthen its position in forward-looking technologies and new application areas—a reflection of its strong long-term investment discipline.
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