Ask AI · How does the demand for artificial intelligence computing power drive semiconductor profits to soar?

“Science and Technology Innovation Board Daily” March 27 (Editor Song Ziqiao) Today, Yu Weining, chief statistician of the Industrial Department of the National Bureau of Statistics, interpreted the profit data of industrial enterprises for January and February 2026, stating that the profits of high-tech manufacturing industries have grown rapidly, enhancing their leading role. In January and February, the profits of high-tech manufacturing industries above designated size increased by 58.7% year-on-year, accelerating by 45.4 percentage points compared to the previous year; this contributed to a 7.9 percentage point increase in profits for all industrial enterprises above designated size, with the contribution effect enhanced by 5.5 percentage points compared to the previous year.

Among them, the rapid development of the semiconductor industry has driven profit growth in related chain industries, with the profit increase in the semiconductor discrete device manufacturing industry reaching as high as 130.5%, and the profits of optoelectronic device manufacturing and electronic circuit manufacturing industries increasing by 56.1% and 19.5% respectively.

As a clearly leading sub-sector in profit growth for January and February, the semiconductor discrete device manufacturing industry significantly benefits from AI demand.

Semiconductor discrete devices are the basic units that constitute power electronic devices, responsible for executing fundamental and critical tasks such as power conversion, signal amplification, and circuit protection, primarily utilizing the physical properties of semiconductor materials (like silicon Si, silicon carbide SiC, gallium nitride GaN, etc.) to achieve functions such as current switching, amplification, and voltage stabilization. They are widely used in consumer electronics, network communications, industrial control, and fields like new energy vehicles.

Among them, power devices are the highest value and highest technical barrier category among discrete devices, mainly handling high voltage and large current.

Orient Securities believes that the market previously focused on the automotive electronics, industrial, and consumer electronics sectors for trading in the power device sector, but now the trading focus has shifted to AI servers and the inflation effects brought by electricity.

The institution stated that the enormous energy consumption of AI computing power is forcing upgrades in the electricity system, directly driving demand for high-voltage and large-current power modules in these fields. The large-scale deployment of AI data centers is directly leading to a surge in orders for low-voltage MOSFETs, power management ICs, and other products, with leading power companies shifting core capacity toward the AI track, which also indirectly results in a passive contraction in the supply of similar products in fields such as photovoltaics, energy storage, and traditional automobiles.

On February 5, industry leader Infineon announced a price adjustment, set to increase prices for power switches and related chips starting April 1, with domestic companies like Xin Jie Neng and Silan Microelectronics also gradually raising prices.

Qunyi Securities stated that benefiting from the rapid growth of AI investments, the semiconductor industry chain demand continues to overflow, while the costs of materials such as metals and resins have risen significantly. As a result, various subsectors of the semiconductor industry have experienced varying degrees of price increases since the second half of 2025. It is expected that in 2026, sectors such as power are likely to benefit from price increases, leading to a recovery in profitability.

Guosen Securities believes that the de-stocking cycle for analog chips and power semiconductors is lagging and is currently in an upward cycle, combined with the trend of localization. It recommends paying attention to analog chip companies such as Senzar, Jiefa, SIRU, Naxin Micro, Nanxin Technology, Jingfeng Mingyuan, and Aiwei Electronics, as well as power semiconductor companies like Xin Jie Neng, Yangjie Technology, Jie Jie Micro, Dongwei Semiconductor, and Silan Microelectronics.

Price Surge Hits, Institutions Optimistic About All Links of Semiconductors

Currently, the price surge has swept through various subfields of semiconductors. Ping An Securities research report states that the global chip and semiconductor industry is experiencing a wave of price increases, with price signals gradually transmitting from upstream raw materials to downstream terminals, leading the entire industry chain into a whirlpool of price transmission, as major companies release price increase letters to shift cost pressures. At present, the price surge has engulfed all subfields of semiconductors, impacting LED drivers, analog chips, power devices, MCUs, SoC chips, and others, with various manufacturers following suit to raise prices.

The core reasons for this price increase are: first, the significant rise in costs across the entire industry chain, with metals like gold, silver, and copper continuing to increase in price, wafer foundry and packaging testing both raising prices, and chip manufacturing costs rising; second, after the previous adjustment cycle, the inventory of industries such as analog chips has returned to a healthy range, with the explosive demand for AI computing power causing a shortage of storage chips, resulting in structural supply-demand imbalances, with high-end capacity being heavily utilized, while leading manufacturers reduce traditional capacity, creating dual pressures of increased demand and reduced supply, leading to a continuous expansion of the industry supply-demand gap.

The institution stated that, against the backdrop of the price increase cycle, it is optimistic about all links of semiconductors, recommending attention to power devices, analog chips, MCU chips, SoC chips, and other sub-markets, especially companies with high market share, few competitors, strong price transmission/product bargaining power, as well as those with prices at the bottom and greater price increase elasticity.

(“Science and Technology Innovation Board Daily” Song Ziqiao)