SHANGHAI, Feb 2, 2026, 09:54 GMT+8 — Regular session
China Resources Microelectronics’ Class A shares on the Shanghai exchange fell 3.6% to 61.50 yuan by 0953 GMT+8, after moving in a range between 61.38 and 63.80 yuan earlier. The SSE Composite Index dipped roughly 0.7%, while chipmakers Montage Technology Co Ltd and GigaDevice Semiconductor Inc gained around 2% and 7%, respectively. (Google)
This move is significant because the stock now serves as a gauge for whether China’s power-chip producers can boost prices and margins amid shifting domestic demand and tighter local supply chains. In a January investor update, CFO Wu Guoyi said the company anticipates better revenue and gross margin in 2026, driven by its IDM model—designing and manufacturing chips in-house—to focus on higher-value products. He noted that prices were “warming” and the company plans to “steadily” raise them, while expanding silicon carbide and gallium nitride production and considering integrating 12-inch wafer facilities in Chongqing and Shenzhen into the listed entity.
Risk appetite in Asia remained fragile amid wild metal price swings and a packed schedule of earnings reports, central bank meetings, and key economic data set for this week. (Reuters)
That environment tightens the space for long-term narratives. Traders are looking for proof that price hikes and product upgrades actually boost profits, not just feature in presentation decks.
Silicon carbide, or SiC, along with gallium nitride, is viewed as a growth driver thanks to its ability to reduce heat and improve efficiency in high-voltage power systems, including electric vehicles and data centres. However, these materials often trigger heavy capacity investments that can quickly sour if demand stalls.
China Resources Microelectronics, headquartered in Wuxi, offers power semiconductors, smart sensors, and intelligent control products. Its operations cover chip design, wafer manufacturing, as well as packaging and testing. (Reuters Japan)
Investors are keeping an eye on how a larger 12-inch wafer size impacts costs. Bigger wafers can boost economies of scale, but expenses may rise sharply if production slows down or prices weaken.
Monday’s early dip put pressure on sentiment within a domestic chip group known for its volatile, headline-fueled swings. A more stable session could ease jitters; a sharper fall risks attracting quick exits from fast money players.
Still, the positive note in the filing depends heavily on supply-demand tightening and prices bouncing back for power devices. If demand from autos or energy storage slows, or competitors slash prices, the anticipated margin boost might be delayed beyond what bulls are counting on.
The next major test arrives with the company’s earnings report on April 25. Investors will be watching closely for signs that pricing adjustments and product mix shifts are boosting margins. (Stockanalysis)
