[News] China’s Wide Bandgap Chip Players Diverge, as GaN RF Surges; SiC Profitability Under Pressure
In the first quarter of 2026, China’s wide bandgap semiconductor industry—spanning silicon carbide (SiC) and gallium nitride (GaN)—saw a stark divergence in performance. Driven by robust demand from 5G base station deployment and on-board chargers (OBCs) in electric vehicles, GaN RF-focused companies posted strong earnings growth. In contrast, many SiC power device players faced mounting profitability pressure amid intensifying price competition and rising depreciation costs tied to capacity ramp-ups.
GaN RF Leads; Equipment and Automotive SiC Begin to Pay Off
Sinopack rides 5G and satellite internet tailwinds
Sinopack led the sector with revenue growth of 79.05% YoY, fueled mainly by its subsidiary’s GaN RF device business. As a domestic leader in GaN RF, the company has achieved volume shipments to 5G macro base stations and satellite internet terminals, while benefiting from a surge in defense electronics orders. This propelled quarterly revenue beyond CNY 1 billion. Meanwhile, its SiC power devices have entered mass supply for OBC systems at leading automakers, forming a second growth driver.
Yangjie Technology strengthens automotive foothold, demonstrating earnings resilience
Yangjie Technology reported both revenue and net profit growth in Q1, underpinned by breakthroughs in automotive-grade SiC power devices. Its first SiC chip production line has entered mass production, covering voltage platforms from 650V to 1700V. The company’s automotive-grade power module packaging project has also commenced operations, securing orders from multiple Tier 1 suppliers. As 800V EV platforms gain traction, demand for SiC modules remains strong. Coupled with steady demand from industrial photovoltaics, Yangjie’s SiC-related revenue surged over 50% YoY, becoming a key earnings engine.
AMEC captures GaN MOCVD leadership, unlocking profit elasticity
AMEC posted a 197.20% year-on-year increase in net profit. While this included a one-off gain of approximately CNY 397 million from the disposal of equity in Piotech, its underlying business remained robust, with non-recurring net profit rising 60.09%. AMEC holds a leading domestic market share in GaN MOCVD equipment, benefited from capacity expansions in GaN RF, Mini LED, and power devices. Orders remain strong, and its MOCVD tools for SiC/GaN power applications have entered customer validation, with volume shipments expected in the second half of the year—opening a new avenue for long-term growth.
SiC Substrates and IDM Players Weighed Down by Depreciation and Price Wars
SiC substrates: SICC swings to loss
SICC, a leading Chinese SiC substrate supplier, reported a 10.41% year-on-year revenue decline and a net loss of CNY 60.51 million in Q1, reversing from profit a year earlier. The downturn reflects ongoing price competition, with 6-inch substrate prices falling more than 30% YoY. Meanwhile, ramp-up of its 8-inch production lines has driven up unit costs, keeping gross margins negative. However, combined shipments of 6-inch and 8-inch substrates rose 3.58% QoQ. Profitability is expected to gradually recover as utilization rates increase and yields improve.
San’an faces dual pressure from traditional and emerging business
San’an saw significant declines in both revenue and net profit, reflecting transitional challenges. Its legacy LED business remains under pressure from weak demand and falling prices, with revenue down more than 40% YoY. Meanwhile, newer segments—including SiC substrates and RF filters—are still expanding capacity, with high depreciation costs at its Hunan SiC facility and lengthy customer qualification cycles delaying profitability. Despite this, its SiC devices have passed validation with select automotive clients, and RF filters have begun small-batch shipments for telecom base stations, preserving its long-term growth trajectory.
StarPower Semiconductor hit by surging depreciation costs
StarPower reported a 6% year-on-year decline in revenue and a 74.32% drop in net profit. The primary drag came from its wholly owned chip manufacturing subsidiary, where multiple production lines entered operation but remain in early ramp-up stages. Depreciation expenses rose sharply by CNY 75.43 million, alongside higher amortization of fixed assets. At the meantime, near-term softness in EV demand and slight declines in SiC module prices further squeezed margins. However, the company has already achieved volume shipments of SiC modules to leading domestic EV makers. With improving capacity utilization and cost reductions, performance is expected to rebound in the second half.
Divergence Set to Persist; Technology Breakthrough and Cost Control Become Critical
The performance gap among China’s third-generation semiconductor firms in Q1 2026 reflects a combination of end-market demand, technology maturity, and the pace of capacity ramp-up.
In the near term, GaN RF is expected to maintain strong momentum, supported by continued 5G infrastructure deployment and the expansion of satellite internet. In the SiC segment, accelerating adoption in 800V EV platforms and industrial PV applications will benefit companies that achieve automotive-grade certification early. Meanwhile, price competition in the SiC substrate market is likely to persist, favoring players with scale advantages and technological edge.
Over the longer term, wide bandgap semiconductors represent a critical pathway for China’s semiconductor industry to close the gap with global leaders. With sustained policy support and expanding downstream applications, companies must focus on three core pillars: technological breakthroughs (such as improving SiC substrate yields and enhancing GaN device reliability), cost control (through higher utilization rates and economies of scale), and customer certification (particularly in automotive and industrial segments). Only by excelling in these areas can firms secure a competitive position in an increasingly crowded market.
(Photo credit: FREEPIK)
