New Stock News | SICC Co., Ltd. (688234.SH) is the world's top three silicon carbide substrate manufacturer, and has passed the hearing at the Hong Kong Stock Exchange.

According to the disclosure on July 30 by the Hong Kong Stock Exchange, Shandong SICC Co., Ltd. Technology Co., Ltd. (688234.SH) conducted a listing hearing through the Hong Kong Stock Exchange, with CICC and CITIC SEC as its joint sponsors. The prospectus shows that SICC Co., Ltd. is deeply involved in the wide bandgap semiconductor material industry, with strong professional technical strength, and has been focusing on the research and industrialization of silicon carbide substrates since its establishment. According to data from Frost & Sullivan, based on the sales revenue of silicon carbide substrates in 2024, the company is one of the top three silicon carbide substrate manufacturers globally, with a market share of 16.7%. SICC Co., Ltd.'s silicon carbide materials provide core support for the new energy and AI industries. The company's silicon carbide substrates can be widely used in electric vehicles, AI data centers, photovoltaic systems, AI glasses, rail transit, power grids, home appliances, advanced communication base stations, and other fields. According to data from Frost & Sullivan, as of March 31, 2025, the company is one of the few globally to achieve mass production of 8-inch silicon carbide substrates, one of the first to commercialize 2-inch to 8-inch silicon carbide substrates, and one of the first to introduce 12-inch silicon carbide substrates, as well as one of the first to use liquid phase method to produce P-type silicon carbide substrates. SICC Co., Ltd. has established itself as an important supplier to internationally renowned semiconductor companies, and its products are widely recognized internationally. As of March 31, 2025, the company has established business partnerships with over half of the top ten power semiconductor device manufacturers globally (based on 2024 revenue). Company's customers mainly use the company's silicon carbide substrates to manufacture power devices and radio frequency devices, which are ultimately used in terminal products such as electric vehicles, AI data centers, and photovoltaic systems. The prospectus mentions that SICC Co., Ltd. was one of the first companies in China to industrialize semi-insulating silicon carbide substrates, and further achieved the industrialization of conducting silicon carbide substrates. Currently, SICC Co., Ltd.'s production of silicon carbide substrates has iteratively increased from 2 inches to 8 inches, and the company launched the industry's first 12-inch silicon carbide substrate in 2024. According to data from Frost & Sullivan, increasing the size of silicon carbide substrates will result in a larger surface area, allowing for more chips to be produced on a single substrate and reducing edge waste, thereby improving production efficiency and cost-effectiveness. The global silicon carbide substrate market in which the company operates is highly competitive, characterized by rapid technological development, rapid changes in customer demands and preferences, frequent introduction of new products, and emergence of new industry standards and practices. In addition, the market is highly concentrated, with the top five market participants accounting for a total market share of 68.0% based on silicon carbide substrate sales revenue in 2024. Compared to traditional silicon materials, silicon carbide materials have superior characteristics and performance, and have experienced rapid development in recent years, greatly expanding their application scenarios, especially in power semiconductor devices. According to Frost & Sullivan's data, the global power semiconductor device market size is expected to reach $19.7 billion by 2030, with a compound annual growth rate of 35.8% from 2024 to 2030. Financially, in the fiscal years 2022, 2023, 2024, and the three months ended March 31, 2025, SICC Co., Ltd. achieved revenues of approximately RMB 417 million, RMB 1.251 billion, RMB 1.768 billion, and RMB 408 million respectively; during the same period, the company achieved profits of approximately -RMB 176 million, -RMB 46 million, RMB 179 million, and RMB 9 million respectively. In the risk factors section of the prospectus, SICC Co., Ltd. mentions that its performance is influenced by fluctuations in downstream industry demand and raw material supply. Slow growth in these downstream industries may adversely affect the company's business, financial condition, and operating performance.