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SK Hynix unveiled its next-generation "photonics-centric" CPO roadmap, extending optical interconnects directly to memory interfaces. The convergence of the optical communication and storage themes further lifts expectations for CPO industrialization. Major storage players are collectively pursuing a "Plan B", with new architectures including HBF, ZAM and HBC under intensive development. Risks associated with the single HBM roadmap have drawn attention, marking an era of parallel development for multiple storage technologies.
A new wave of chip price hikes is spreading broadly. Companies including Maxscend, Nations Technology, STMicroelectronics and ADI have announced price adjustments successively, with power semiconductors and analog chips joining the uptrend, putting the industry in a cycle of rising volumes and prices.
Shenghe Micro recorded growth in both shipment volume and profits in H1, while its dual RMB 10-billion bases in Jiangyin and Lingang are advancing, accelerating domestic substitution in advanced packaging. US SiC leader Wolfspeed plunged on underwhelming financial results, signaling diverging prosperity across the power semiconductor segment.
Overnight, US-listed storage and optical communication stocks outperformed the market (SK Hynix +4%, Micron +3%, Lumentum +6). A-share tech names traded mixed amid volatility, and a full-chain price surge has emerged across semiconductor equipment components.
In-depth Analysis
Optical Communications / Optical Chips：SK Hynix has proposed a photonics-centric architecture for next-generation AI infrastructure, which directly connects memory and processors via photonic interposers, extending optical interconnection from the switching layer to memory interfaces. This marks the penetration of CPO from the networking side to the compute and storage side, benefiting the silicon photonics and optical engine industrial chain. US optical communication stocks rallied overnight, with AOI rising over 5% and Lumentum climbing more than 6%. Pegatron’s SLP products have been adopted and mass-produced for high-end 800G/1.6T optical modules, while 3.2T products are under development. Eoptolink launched an equity incentive plan with a performance target of annual revenue of no less than RMB 50 billion in 2026.
Advanced Packaging: Shenghe Micro posted H1 revenue of RMB 3.407 billion (+7.20%) and net profit attributable to parent of RMB 449 million (+3.33%). Two key projects are moving forward in parallel: a RMB 9.8 billion fine-pitch packaging and testing project in Jiangyin, and a RMB 10 billion 3DIC project in Lingang, Shanghai (China’s largest single-investment 2.5D/3D production line). The company has completed process development and manufacturability verification for an ultra-large-size die-to-die integration solution with a 6x reticle silicon bridge. It noted that TSMC’s CoWoS order backlog has been extended to the end of 2026, and the global shortage of 2.5D packaging capacity may not ease until 2027. JCET recorded H1 net profit of RMB 845 million (+79.41%), with Q2 profit surging 90% quarter-on-quarter. HYC’s H1 net profit jumped 1706.7% year-on-year amid volume growth of advanced packaging equipment.
SiC / Power Semiconductors: Dongwei Semiconductor recorded H1 revenue of RMB 736 million (+19.58 %) and net profit of RMB 106 million (+285.41 %). Automotive‑grade and industrial‑grade power products account for approximately 79 % of its business. Demand from data‑center / compute‑server power supplies serves as the major incremental driver, with Q2 net profit surging 1712 % quarter‑on‑quarter. Tianyue Advanced posted H1 revenue of RMB 914 million (+15.10 %) with narrowing losses, and keeps advancing its 8‑inch SiC‑substrate program. LY‑Science projected H1 net profit growth of 207‑217 %, with sales of ON Semiconductor‑branded SiC products multiplying several‑fold. The thesis of rising volume and prices across power semiconductors continues to receive validation.
Storage & Compute Chips: Jwei Deep Dive outlines the "Plan B" for storage. SK Hynix and SanDisk released the first standard specification for HBF (8/16-layer NAND stacking, up to 512GB, bandwidth of 0.4–3.0 TB/s; samples to be available in H2 2026 and mass production in 2027). Intel’s ZAM memory targets twice the bandwidth of HBM4 and is scheduled for mass production in 2028–2030. Qualcomm’s HBC and Unigroup’s Zixuan architecture (3D DRAM with bandwidth exceeding 30 TB/s) are advancing concurrently. Micron plans to invest USD 10 billion over 10 years to build a storage research lab in the US. JPMorgan forecasts that SK Hynix may return at least USD 130 billion to shareholders before 2027.
Equipment & Materials: CITIC Construction Investment states that the global semiconductor equipment components sector is experiencing a rare full-chain price surge. Pricing power is structurally shifting from end-chip manufacturers to equipment and component suppliers, with extended lead times for valves, pipelines, ceramic components and RF power supplies. Shanghai Sinyang will increase investment in its Shanghai Chemical Industry Park project to RMB 1.05 billion, adding an annual capacity of 5,000 tons of copper interconnect electroplating solution. Tuojing Technology’s H1 net profit surged 1324% year-on-year. KINGSEM’s R&D and production base in Central China settled in Optics Valley. High-grade electronic yarn is in acute shortage, and price hikes for electronic fabric are spreading from premium grades to conventional products.
Wafer Fabrication: Samsung is accelerating construction of its second factory in Taylor, US, and pushing forward SEMI certification pre-review for equipment suppliers ahead of year-end groundbreaking. No major new updates for SMIC or Huahong today.
Policy & Macro Environment: South Korea has revised up its forecast for peak power demand in 2040 to 165 GW, with data centers as the major growth driver, confirming AI infrastructure’s pull on power supplies and semiconductor clusters. Broadcom is reportedly seeking to raise more than USD 60 billion through AI debt financing. Google Waymo’s self-developed automotive-grade ASIC (computing power over 1000 TOPS, built on TSMC’s 5nm process) has entered mass production, continuing the trend of leading cloud vendors developing proprietary chips.
Daily Investment Tips
1. SK Hynix is integrating optical interconnects into memory interfaces, expanding the application boundary of CPO from the networking side to the storage side. Silicon photonics, optical engines and optical chip segments are expected to receive new valuation catalysts. It is recommended to track the verification progress of domestic CPO/silicon photonics supply chains.
2. The price hike wave has spread from storage chips to power semiconductors, analog chips and passive components, coupled with rising prices of equipment components. The upward shift of pricing power across the industrial chain benefits the equipment and materials sectors. Nevertheless, Wolfspeed’s financial results serve as a warning that SiC demand growth is not universal. For the power semiconductor segment, it is necessary to distinguish the divergence in prosperity between power supplies for AI data centers and automotive-grade demand.
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