Silan Microelectronics
Chinese IDM making power and discrete semiconductors for EVs, appliances, data centers.
On the record
Checkpoint: H1 2026 earnings release, testing guided 96% profit growth
The call
Silan sits inside China's protected power-chip market, growing fast alongside several state-backed peers with no clear separation from them.
Silan makes power semiconductors (chips that control electricity flow) for factories and devices across China. It has grown fast thanks to government support that pushes Chinese buyers to use local suppliers instead of foreign ones, and because US sanctions on rival chipmaker Nexperia pushed more orders its way. But Silan has no real edge over other Chinese power-chip makers like Yangjie or StarPower who get the same government help, prices are getting squeezed, and the US government is investigating whether Silan benefited unfairly from diverted orders. If US export restrictions tighten, or if the price increases planned for 2026 fall apart when demand drops, Silan's profits could shrink fast.
Why
01
AI pressure: None apparent. AI data center buildout adds demand for power chips, feeding Silan rather than eating it. Could AI do the core job? Unlikely.
02
Bigger players: Yangjie Technology, StarPower, NCE Power, CR Micro. Equally subsidized domestic rivals sell the same power chips, keeping the field crowded and margins tight. Could a giant copy it? Probably.
03
What protects it. Beijing's domestic-substitution push and the Nexperia supply crisis route Chinese buyers to local IDMs like Silan.
What would change this call
Silan's H1 2026 earnings release around Aug 25, 2026 versus its guided +96% profit growth. Shows whether current demand and pricing strength are actually converting to results.
US BIS issuing export-control action naming Silan specifically over Nexperia-related sourcing. Would show US regulators treating Silan as a targeted beneficiary of supply diversion, not just a bystander.
Whether 2026 coordinated price hikes by Silan, Yangjie, CR Micro and NCE Power hold or reverse. Would show if pricing power reflects real demand or a fragile cartel-like move vulnerable to demand softening.
US BIS issuing export-control action naming Silan specifically over Nexperia-related sourcing. Would show US regulators treating Silan as a targeted beneficiary of supply diversion, not just a bystander.
Whether 2026 coordinated price hikes by Silan, Yangjie, CR Micro and NCE Power hold or reverse. Would show if pricing power reflects real demand or a fragile cartel-like move vulnerable to demand softening.
Key numbers
- FY2025 revenue CNY 13.05bn, up 16.32% YoY
- FY2025 net profit up 81.3% YoY
- H1 2026 profit guided up to 96% YoY
Named risks
- US BIS may investigate Silan over Nexperia sourcing shift per Nov 2025 congressional letter.
- SiC segment profitability under pressure from price competition and depreciation across Chinese wide-bandgap makers.
- Coordinated 2025-2026 power-semiconductor price hikes could reverse if EV/appliance demand softens.
- No differentiated moat versus five equally-subsidized domestic peers competing for same customers.
- Sharp analyst divergence and stock volatility (UBS Buy CNY46.20 vs Jefferies Underperform CNY26, 2026).
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Yangzhou Yangjie Electronic Technology | contesting | market cap ~CNY 50-54bn, revenue TTM ~CNY 7.68bn as of July 2026 |
| StarPower Semiconductor | contesting | rival IGBT module maker in same domestic-substitution wave, 2026 |
| Wuxi NCE Power / Chongqing CR Micro | contesting | joined coordinated power-semiconductor price hikes in 2025-2026 |
| Nexperia | gaining on | Silan cited as alternate wafer supplier as Nexperia's China ops redirect orders, Nov 2025 |
| Infineon, STMicroelectronics, onsemi | gaining on | foreign incumbents policy-blocked from China's domestic-substitution wave, 2026 |
Questions people ask
- Is Silan Microelectronics profitable in 2026?
- Yes. Silan's FY2025 net profit rose about 81.3% year over year on CNY 13.05 billion revenue, and the company guided (vendor-claimed) H1 2026 profit to rise as much as 96% year over year, per a July 15, 2026 disclosure covered by MarketScreener and Digitimes.
- Who owns Silan Microelectronics?
- Silan (SSE: 600460) is a Chinese public company listed on the Shanghai Stock Exchange since March 11, 2003, the first IC design firm to list in China. It has no single controlling parent but received over CNY 1 billion from China's state-backed Integrated Circuit Industry Investment Fund around 2020.
- Could AI replace Silan Microelectronics?
- No. Silan is a physical wafer fab and packaging manufacturer of discrete power semiconductors; AI cannot substitute physical fab capacity or automotive-grade chip qualification. AI is actually a tailwind, cited as a driver of 2025-2026 power-semiconductor price increases across Chinese suppliers including Silan, per a June 25, 2026 report.
- Who is Silan Microelectronics' biggest competitor?
- Silan competes with several similarly subsidized Chinese power-semiconductor IDMs, chiefly Yangzhou Yangjie Electronic Technology (SZSE:300373, market cap roughly CNY 50-54bn as of July 2026), plus StarPower Semiconductor, Wuxi NCE Power, and Chongqing CR Micro, none of which it has decisively overtaken.
- Is Silan Microelectronics under US export control scrutiny?
- Yes. A November 18, 2025 US congressional letter asked the Bureau of Industry and Security to investigate Silan, alongside Wuxi NCE Power, Yangjie Technology, and WingSkySemi, as domestic wafer suppliers that Nexperia's China operations were reportedly turning to amid the Nexperia ownership and export-control dispute.
- Is Silan Microelectronics a safe company to join in 2026?
- Headcount grew to 11,113 employees as of December 31, 2025, up 8.71% year over year, alongside rising revenue and profit, suggesting active hiring. However, it faces margin-compressing competition from equally-subsidized domestic peers and pending US regulatory scrutiny tied to the Nexperia sourcing crisis.
Timeline
- 2026-07-16Silan guides H1 2026 net profit to rise as much as 96% year over year
- 2026-06Xiamen Silan Jihong Semiconductor receives CNY 4.15bn funding for SiC capacity
- 2026-05-22Silan's B7 IGBT auto module named a top-10 new domestic automotive-grade chip
- 2026-03Silan discloses 12-inch advanced analog IC production line in Xiamen
- 2025-12-31FY2025 results: CNY 13.05bn revenue, net profit up about 81.3% year over year
- 2025-11-18US congressional letter urges BIS to investigate Silan over Nexperia sourcing shift
- 2024-05-28Silan announces roughly CNY 12bn SiC 8-inch wafer fab in Xiamen
- 2003-03-11Silan lists on Shanghai Stock Exchange as SSE: 600460
- 1997-09-25Silan founded by Chen Xiangdong and six partners in Hangzhou
Revision history
30 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Hangzhou Silan Microelectronics
- Hangzhou Silan Microelectronics Expects H1 Profit to Rise 96%; Shares Down 7% (2026-07-15)
- Hangzhou Silan Microelectronics Hits Day Low of CNY 44.32... (2026-07-13)
- Hangzhou Silan Microelectronics (SHA) (2026-06-30)
- Hangzhou Silan Microelectronics (600460) Investor Relations, Earnings Summary & Outlook (2026-07-07)
- Hangzhou Silan Microelectronics (600460) Q2 2025 Summary (2025-08-22)
- Silan Microelectronics forecasts stronger first-half 2026 profit on sales growth and investment gains (2026-07-16)
- Inside China's Power Semiconductor Shakeout (2026-06-09)
- Chinese power semiconductor firms raise prices again amid demand from AI data centers (2026-06-25)
- Vishay Product Change #PCN-SIL-044-2026-REV-0
- Master Agreement between Sipex Corporation and Hangzhou Silan
- Hangzhou Silan Microelectronics (SHA) (2026-07-19)