Power Semiconductor Results Diverge in H1 2026 as AI Data Center Demand Drives Two Price Hikes of 15%-25%

In the first half of 2026, AI computing infrastructure drove structural changes in power semiconductor demand, as rising server power consumption and higher rack power density expanded the application scope of power semiconductors. Semi-annual reports from major domestic manufacturers revealed significant divergence in performance, with some companies reporting profit declines and others achieving growth.

StarPower Semiconductor's semi-annual report showed revenue of RMB 1.928 billion, down 0.4% year-on-year; net profit attributable to shareholders was RMB 65 million, down 76.4%; and net profit excluding non-recurring items was RMB 46.15 million, down 82.29%. Gross margin fell to approximately 21% from nearly 30% in the same period of 2025, and basic earnings per share dropped from RMB 1.15 to RMB 0.27. The company attributed the profit decline mainly to higher raw material costs for power modules and the impact of 2025 product price cuts on gross margin. Management added at the earnings call that higher operating costs, increased R&D expenses, and a swing in finance costs from negative to positive also weighed on results. By business segment, the new energy segment saw revenue fall 16.02% to RMB 1.02 billion due to temporary demand fluctuations, while industrial control and power supply revenue rose 40.17% to RMB 710 million. The semi-annual report noted strong demand in applications such as AI data center power supply, while demand in new energy vehicles and photovoltaics remained under pressure.

NCE Power reported first-half revenue of RMB 1.167 billion, up 25.57% year-on-year; net profit attributable to shareholders was RMB 233 million, down 0.75%; and net profit excluding non-recurring items was RMB 194 million, down 6.49%. In the second quarter, revenue reached RMB 650 million, up 25.78% quarter-on-quarter; net profit attributable to shareholders was RMB 139 million, up 46.84% quarter-on-quarter; and gross margin for the quarter was 31.06%, up 2.32 percentage points from the previous quarter.

Silan Micro reported first-half revenue of RMB 7.262 billion, up 14.62% year-on-year; net profit attributable to shareholders was RMB 516 million, up 94.84%; and net profit excluding non-recurring items was RMB 271 million, up 0.67%. The company stated that changes in the fair value of other non-current financial assets measured at fair value, mainly due to price movements in its holdings of Anlogic Technology and Ynergy Technology shares, as well as valuation changes in shares of Lianxun Instrument acquired through strategic placement, generated a total after-tax net gain of approximately RMB 194 million.

China Resources Microelectronics reported first-half revenue of RMB 6.128 billion, up 17.44% year-on-year; net profit attributable to shareholders was RMB 722 million, up 113.23%; and net profit excluding non-recurring items was RMB 414 million, up 51.48%. Second-quarter revenue of RMB 3.271 billion set a record for a single quarter, with capacity utilization running at high levels. MOSFET business revenue grew more than 20% year-on-year, and 8-inch IGBT sales increased 119%.

In terms of business models, StarPower adopts a combination of fabless and IDM approaches, while China Resources Microelectronics and Silan Micro operate IDM models with their own wafer capacity. Since the start of 2026, the power semiconductor industry has undergone two rounds of price increases: at the beginning of the year, China Resources Microelectronics and Silan Micro led with increases of more than 10%; around July, nearly 20 companies, including China Resources Microelectronics, raised prices again, with increases concentrated in the range of 15% to 25%.