On July 28, 2026, Shenzhen BASICSEMI Co., Ltd. (09971) announced the signing of a general contracting agreement with China Construction Second Engineering Bureau Ltd. for its silicon carbide module packaging production base project. This marks a critical capacity expansion step for the company, known as "China's first silicon carbide chip stock," which recently listed on the main board of the Hong Kong Stock Exchange, fueled by fresh capital.
According to the announcement, the project is located in Pingshan District, Shenzhen. The total contract price is RMB 193,300,000 (tax inclusive), with a total building area of 59,357.54 square meters. The project was filed for construction with the Shenzhen Municipal Development and Reform Commission in April of this year. The board of BASICSEMI believes that entering into this project general contracting agreement will facilitate the company's future operational strategy, helping it meet the growing downstream market demand from new energy vehicles, intelligent computing centers, and photovoltaic energy storage.
The silicon carbide industry is experiencing an upward cycle, with the company expanding capacity immediately after listing to seize the high-growth AI market.
It is noteworthy that BASICSEMI has accelerated capacity construction post-listing coinciding with a profound cyclical reversal and price surge in the silicon carbide industry. On the supply side, smaller players are being weeded out. Capacity utilization rates for leading substrate manufacturers have generally exceeded 90%, leading to tight supply for some high-end products. On the demand side, AI data centers are emerging as a powerful growth driver for the silicon carbide sector. Research from QYResearch indicates that the global silicon carbide AI server power supply market is projected to reach $9.249 billion by 2032, with a compound annual growth rate of 22.0% from 2026 to 2032.
Industry analysts point out that the current demand growth rate for silicon carbide from the AI sector has surpassed that of the new energy vehicle market. Silicon carbide is transitioning from being "automotive-exclusive" to "pervasive across all applications." Driven by supply-demand tightness, global leaders like Infineon and STMicroelectronics have initiated price adjustments, with domestic substrate and device manufacturers following suit, pushing the entire industry into a rising price cycle. Recently, BASICSEMI issued a voluntary announcement, planning to adjust prices for some products starting from the third quarter of 2026, with a maximum increase of up to 25%. The company's decision to launch an expansion plan immediately upon listing reflects both its precise judgment of industry trends and its forward-looking capacity layout.
Changxin Technology's listing triggers a capital feast, and "Tsinghua lineage" hard-tech companies enter a new expansion phase.
Recently, there has been a flurry of capital activity among China's top tech companies. Several leading enterprises with "Tsinghua roots," including Changxin Technology and Zhongji Innolight, have reached critical milestones, reflecting the industry's overall high prosperity and sustained positive capital market sentiment. Changxin Technology listed on the Shanghai Stock Exchange's STAR Market on July 27. Its shares surged 465.82% on the first day of trading, pushing its total market capitalization to over 3.28 trillion yuan, ranking first among A-share companies. The company expects its net profit attributable to the parent for the first half of 2026 to be between 50 billion and 57 billion yuan, a year-over-year increase of over 22 times. It has become China's largest and the world's fourth-largest memory chip manufacturer.
Optical module leader Zhongji Innolight is expected to follow suit, with its listing on the Hong Kong Stock Exchange scheduled for July 30, aiming to raise 54.5 billion Hong Kong dollars, which would be the largest IPO in Hong Kong in seven years. The company is one of the first in the world to achieve mass production of silicon photonic optical modules and, by revenue, was the world's largest supplier in 2025.
It is worth noting that the core founding teams of these companies are all graduates of Tsinghua University with extensive overseas study and research experience, placing them in the same "Tsinghua lineage" of entrepreneurial ventures as BASICSEMI. While Changxin Technology and Zhongji Innolight have reached a mature stage, BASICSEMI is still in a rapid growth phase. However, its similar Tsinghua background and entrepreneurial genes provide a development path reference benchmarked against these industry leaders. Against the backdrop of growing downstream market demand, BASICSEMI's strategic capacity positioning is expected to seize the first-mover advantage in the dual growth markets of automotive and AI computing, where silicon carbide penetration rates are continuously rising.
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