HK Stock Market Move | SICC Co., Ltd. (02631) rose over 17% as TSMC's performance exceeded expectations and guidance was positive. The company is actively expanding its silicon carbide applications.

SICC Co., Ltd. (02631) surged over 17%, reaching a high of HK$70.4 in intraday trading, setting a new record high. At the time of writing, it rose by 14.67% to HK$68.4, with a trading volume of HK$3.14 billion. On the news front, Zheshang research report pointed out that SICC Co., Ltd. is actively expanding the application of silicon carbide in emerging fields, opening up long-term growth opportunities. 1) AR glasses: Silicon carbide material, with its high refractive index and lightweight advantages, is expected to become the ideal material for the next generation of AR glasses waveguide lenses, achieving better display effects. 2) AIDC: With the explosive demand for AI computing power, the energy consumption of data centers is becoming more prominent. Silicon carbide power devices can significantly improve server power efficiency. With the trend of giant companies like NVIDIA driving data centers towards 800V high-voltage architecture, silicon carbide is expected to become a key material. 3) Advanced packaging: Single crystal SiC has a thermal conductivity 2-3 times higher than silicon, making it an ideal material for the intermediate layer, which is expected to provide new heat dissipation solutions for CoWoS packaging. It is worth mentioning that TSMC's performance in the fourth quarter of 2025 far exceeded expectations, achieving double-digit growth for the seventh consecutive quarter. The financial report shows that TSMC's net profit in the fourth quarter of 2025 surged by 35% year-on-year to about $16 billion, hitting a record high, with a gross margin exceeding 60% for the first time. TSMC has significantly raised its capital expenditure guidance for 2026 to $52-56 billion, nearly 40% higher than previous expectations. In addition, TSMC stated that capital expenditures would increase significantly over the next three years. Huaxin Securities previously pointed out that SiC materials meet the performance requirements of AI chips, with leading AI customers driving the upgrade of intermediate layer materials.