Highlights

Power semiconductor suppliers have announced price increases, sparking broad gains across related concept stocks. Computing-chip leader Cambricon exceeded a one-trillion-yuan market capitalization on the STAR Market—the first firm on that board to do so—after a fresh surge in share price. Demand from AI data centers and rising upstream costs are cited as dual drivers behind the price adjustments and sector optimism, while several listed companies are expanding capacity and reporting substantial profit improvements.

Sentiment Analysis

• The overall market tone is positive and bullish, driven by strong earnings, capacity expansion plans, and industry-wide price adjustments. Investor enthusiasm is reflected in broad gains on the Sci-Tech Innovation Board and significant share-price advances among leading names. Policy and infrastructure developments, such as national and corporate initiatives in space-based computing, add strategic momentum.

Article Text

Shares of leading computing-chip maker Cambricon opened higher on June 30 and rose throughout the morning session, reaching an intraday high of 8.91% and a share price near CNY 1,614.09. The rally pushed the company’s market capitalization above CNY 1 trillion, marking it as the first firm on the STAR Market (Sci-Tech Innovation Board) to reach that milestone. Cambricon achieved full-year profitability for the first time in 2025 and continued to post strong results into 2026: in the first quarter it recorded net profit attributable to shareholders of CNY 1.013 billion, a year-on-year increase of 185.04% and a quarter-on-quarter rise of 122.89%, its strongest single-quarter performance to date.

Positive industry developments have reinforced investor sentiment. On June 29, China Mobile outlined plans for a space-computing layout that described a global compute-internet architecture and a commercial path for a distributed computing network, mentioning a constellation of 2,520 low-earth-orbit satellites as part of that vision. On the same day, a Beijing Space Computing Innovation Center was inaugurated, complementing recent registration of a Space Intelligent Computing Research Institute in the Beijing Economic-Technological Development Area. The new center, positioned in Beijing Satellite Town, aims to coordinate the supply chain and upstream-downstream collaboration through a "company + alliance" model.

The broader STAR Market strengthened as well: the STAR 50 index gained 3.51%, and numerous technology and semiconductor names posted double-digit gains, with several hitting their daily up-limit. Market breadth reflected rising confidence in the sector’s growth prospects.

Power-semiconductor manufacturers also moved the market. In the same session, the A-share power-semiconductor sector rose, led by near-double-digit advances in some names. Multiple manufacturers announced price adjustments effective July 1. Global leader Infineon issued another price-notice—its second this year—covering selected products and taking effect in July 2026. Domestic leader Yangjie Technology announced a 10–15% across-the-board price increase for all product lines from July 1, 2026. Other suppliers including Silan Microelectronics, MacMicros, and China Resources Microelectronics have begun or are preparing a second round of price changes in the current year.

The current round of price increases reflects both surging demand and rising costs. On the demand side, AI data center buildouts are fueling sharply higher consumption of high-voltage MOSFETs, power-management MOSFETs, IGBTs and high-voltage BCD devices. Upstream wafer supplier SUMCO reported that AI servers require roughly 3.8 times as many 12-inch wafers as general-purpose servers, materially lifting demand for core power devices. On the cost side, prices for precious metals, electronic chemicals, wafer foundry services, and packaging-and-testing have risen steadily; cascading cost increases through the supply chain have contributed to suppliers’ decisions to raise selling prices.

Capacity expansion for power semiconductors is progressing globally. Mid-June reports indicated the South Korean government has launched a major ‘‘super innovation economy’’ program that will allocate significant public funds to next-generation power-semiconductor technology. Domestically, leading Chinese vendors such as China Resources Microelectronics, Silan Microelectronics, and Yangjie Technology are also investing in capacity growth and product upgrades to capture rising demand.

Analysts see a favorable medium-term outlook. Research reports suggest that the combination of AI data-center demand and new-energy applications is pulling the power-semiconductor industry into a fresh upcycle. Near-term supply tightness and elevated costs may persist, but the resulting higher prices and stronger topline growth should improve industry profitability. A-share power-semiconductor companies are expected to benefit from the cycle driven by AI-related power requirements, opening a larger growth runway for many listed names.

Institutional attention toward the sector is strong. Data shows there are 29 A-share stocks classified under the power-semiconductor theme, many of which have attracted repeated institutional research visits. Twelve of these firms received interest from five or more research institutions, and consensus forecasts indicate that those names could post notable profit turnarounds or growth in 2026. Companies highlighted for above-average projected improvements include companies with expected net-profit growth rates well into double digits.

Several firms noted product and technology roadmaps that include complementary compound-semiconductor offerings such as silicon carbide (SiC) and gallium nitride (GaN) to supplement silicon-based power devices. One major foundry indicated it is studying compound-semiconductor routes while leveraging its existing silicon-based volume capacity and broad customer base to offer a fuller product mix, meeting downstream demand for diversified power solutions. Another company, already reporting improved results, expects full-year momentum to continue as MOSFET and IGBT shipments rise and domestic substitution accelerates.

Overall, the sector is experiencing a convergence of favorable demand, constrained near-term supply and cost-driven pricing that together support a constructive earnings outlook. Investors and industry watchers are closely monitoring pricing actions, capacity expansions and the pace of AI-driven infrastructure deployments as keys to whether the current positive momentum will translate into sustained sector-wide earnings growth.

Key Insights Table