SICC (02631. HK) was officially listed on the main board of the Hong Kong Stock Exchange on August 20, 2025, becoming the only SiC substrate company listed on both "A+H" markets. This is a crucial step for the company to move towards internationalization.

SICC has issued 47.7457 million H-shares globally through its IPO in Hong Kong, accounting for 10% of its total share capital after issuance. Among them, 2.3873 million shares were issued in Hong Kong, accounting for 5%; 45.3584 million shares were issued internationally, accounting for 95%; and additional 15% over-allotment options were issued, corresponding to 7.1618 million shares. The issue price is HKD 42.80 per share. The margin ratio of the Hong Kong IPO exceeds 2800 times, with a subscription amount of nearly HKD 250 billion. Such a high subscription multiple demonstrates the high enthusiasm of funds for SICC's new stock, and also highlights the high attention and recognition from the capital market towards the SiC industry.

Since its establishment, SICC has been dedicated to the research and industrialization of high-quality SiC substrates. It is one of the few companies in the world that can achieve mass production of 8-inch SiC substrates, the first to commercialize 2-inch to 8-inch SiC substrates, and also the first to launch 12-inch SiC substrates. According to the report of Fuji Keizai from Japan, in the global market competition of n-type SiC substrate material in 2024, SICC firmly stayed at the second position of the world's SiC substrate manufacturers with a market share of 22.80%. Its company brand and products have established a high reputation in the international market. The IPO in Hong Kong is an important action of the company's internationalization strategy. Part of the raised funds will be used for the construction of overseas production capacity, continuing to align with the strategic planning of leading overseas customers; Part of the funds will be invested in further R&D of large-sized products to ensure intergenerational leading in technology. Through the Hong Kong capital market platform, SICC will further enhance its international reputation, broaden its financing channels, and provide financial support for subsequent technology research and overseas market expansion.

The Key & Core Technology Builds the Foundation for Growth

The size of SiC substrate is an important indicator for measuring technological leadership, and development of bigger size substrate is an inevitable direction. SICC has achieved batch supply of 8-inch n-type substrates and taken the lead in batch sales to overseas customers, gaining a first mover advantage. The company's 8-inch n-type substrate products have leading quality and batch supply capability, making it one of the few market players in the world can deliver 8-inch SiC substrates in volume. This continues to promote the top customers to transform towards the adoption of 8-inch substrates. In November 2024, SICC launched the industry's first 12-inch SiC substrate. The 12-inch SiC substrate material can further expand the area available for chip manufacturing on one single wafer, greatly increasing the production of qualified chips. Under the same production conditions, it will significantly increase output, reduce unit cost, further enhance economic benefits, and provide the possibility for the larger scale application of SiC materials.

Moreover, SICC has made multi-dimensional breakthroughs in the substrate technology and has successfully delivered high-quality & low-resistance P-type SiC substrates to customers, marking a new step towards higher voltage fields represented by smart grids. The high-quality & low-resistance P-type SiC substrates will greatly accelerate the development of high-performance SiC IGBT and achieve the localization of high-end ultra-high voltage power devices. In addition, the company is also one of the first companies to use liquid-phase method to produce P-type SiC substrates.

SICC won the Gold Award of “Semiconductor Electronic Material” by the Electronic Device Industry News in Japan, for its revolutionary breakthrough in SiC substrate material technology. In the last 31 years since its establishment, this is the first time that a Chinese company won the award, as well as the first time that the organizer gave the top award to a SiC substrate technology. It marks a historic breakthrough for China in the field of key & basic semiconductor materials, demonstrating China's international leading position in the new generation of semiconductor material technology.

The accelerated penetration of SiC in downstream new energy vehicles, photovoltaic power generation, energy storage, AI and other application fields is driving the continuous expansion of the overall market size. Currently, nearly 80% of downstream demand for SiC is from new energy vehicles. In the field of new energy vehicles, with the popularization of the 800V platform, the penetration rate of SiC devices in electric drive systems will continue to increase. Huatai Securities predicts that by 2025, the global consumption of SiC substrates for new energy vehicles will reach 1.996 million pieces per year. As the industry leader, SICC has built long-term strategic partnerships with the international manufacturers of automotive electronics such as Infineon and Bosch, and it will benefit from the development of related fields in the future.

In addition to continuously increasing the penetration rate of SiC in mature industries, SICC is also actively expanding into the emerging application areas such as AI data centers and AR glasses.

In the field of AI data centers, SICC is quietly injecting strong momentum into the upgrading and transformation of AI data centers. The traditional power systems of data center are facing the issues such as high energy consumption and difficulty in heat dissipation in response to the explosive growth of AI computing power. The power density of AI servers continues to increase, and traditional silicon-based power semiconductors are no longer able to meet the requirements. However, SiC, with its wide bandgap, has become the "golden key" to solve these problems. SICC's products have been widely used in the power systems of data centers in the industry giants such as NVIDIA, becoming an important component of the AI computing infrastructures. With the launch of NVIDIA's 800V HVDC power architecture for data centers, SICC's SiC products are expected to rapidly increase in volume.

In the field of AR glasses, the company's 12-inch high-purity SI SiC substrate serves as the core material for high-end optical waveguide, achieving breakthroughs in lightweight and high transparency, while also effectively reducing the cost of SiC lenses, providing key support for large-scale production. SICC has successfully entered the AR glasses supply chain and established cooperative relationships with multiple global manufacturers of synchronous optical industry.

The Globalization Layout Significantly Raises Growth Ceiling

SICC always focuses on strengthening global cooperation, expanding customer base, and deepening customer relationships. The company's global layout has obtained significant achievements. In 2024, SICC's overseas revenue was RMB 840 million, with a YoY increase of 104.43%. The overseas revenue exceeded domestic revenue for the first time, accounting for 57.03%. The overseas gross profit margin reached 42.05%, significantly higher than the domestic one of 20.8%. SICC has established a wide overseas customer network and established business partnerships with over half of the global top 10 manufacturers of power semiconductor devices. It has established long-term cooperation with companies such as Infineon and Bosch. Part of the funds raised from the Hong Kong IPO will be invested in the construction of overseas production capacity to meet the growing demand of international customers. In the future, SICC will expand its development space and achieve rapid growth through global layout.