HK Stock Market Move | SICC Co., Ltd. (02631) up more than 7%, the prospects for silicon carbide applications are broad, and an explosion in demand may drive rapid expansion of the industry scale.

SICC Co., Ltd. (02631) rose more than 7%, at the time of drafting, it increased by 7.01% to HK $59.55, with a turnover of HK $1.88 billion. Public information shows that as a leading company in the silicon carbide semiconductor materials industry, SICC Co., Ltd. has currently achieved the technical breakthrough of a full range of 12-inch silicon carbide substrates, leading the silicon carbide substrate industry into the era of 12 inches. According to a research report by Minmetals Securities, silicon carbide (SiC) as a third-generation wide bandgap semiconductor, with its outstanding advantages in breakdown electric field, bandgap width, thermal conductivity, electron saturation drift speed, and refractive index, is comprehensively penetrating the four major industries of new energy, AI, communication, and AR, becoming a key support for technology upgrade and efficiency revolution. Minmetals Securities believes that the comprehensive outbreak of demand on the demand side is driving rapid expansion of the industry scale. It is estimated that by 2027, there will be a tight balance between supply and demand for silicon carbide substrates, and there may even be a possibility of tight supply of production capacity; by 2030, the global demand for 16.76 million substrates, compared to the supply in 2025, there is a production capacity gap of about 12 million substrates. Among them, AI intermediate layer, new energy vehicles, and AR glasses are the three core growth points, with the bank forecasting that by 2030, the demand will account for 37%, 26%, and 23% respectively; if SiC can achieve industrialization in the application of advanced packaging and heat dissipation materials in AI chips, in the "substrate layer", "intermediate layer", and "heat sink" stages, by 2030, the global demand for silicon carbide substrates is expected to reach about 30 million pieces.