Innoscience (02577): Analysis of a Hot Hong Kong Stock - Global Leader in GaN Power Semiconductors

Innoscience (02577) is a globally leading gallium nitride (GaN) power semiconductor company, adopting an IDM full-industry-chain model and owning the world’s first 8-inch silicon-based GaN wafer mass production line with the largest capacity [0][7]. The company listed in Hong Kong on December 30, 2024 [3], with active stock price performance after listing; in 2025, it fluctuated around HK$70 [4], and its market capitalization exceeded HK$70 billion [0][2].

Its core advantages include: (1) Technological leadership: As the only Chinese chip enterprise selected into NVIDIA’s 800V DC power architecture partner list [0][5], it provides GaN power solutions for AI servers; (2) Customer ecosystem: Established partnerships with consumer electronics manufacturers such as OPPO, Vivo, Xiaomi and data center clients [0]; (3) Industry trend: Benefiting from the AI-driven power revolution, demand for GaN chips has surged, leading to supply shortages [0][5]; (4) Policy support: China’s third-generation semiconductor industry policies provide impetus for the company’s development [6].

1. AI and Semiconductor Cross-Enabling
   : NVIDIA cooperation highlights GaN’s core role in improving AI server power efficiency, and AI industry growth directly drives product demand [5];
2. IDM Model Barrier
   : Full industry chain layout reduces costs and ensures supply chain stability, forming a competitive moat [7];
3. Scarcity Value
   : As the No.1 company in power device market capitalization [9], it has a first-mover advantage in the global GaN market, and scarcity supports market attention [10].

• AI server market expansion: Expected CAGR of over 30% from 2025 to 2030, driving demand for GaN power solutions [5];
• Consumer electronics upgrade: Popularization of fast charging technology promotes application of GaN devices [0];
• New energy vehicle penetration: Potential of GaN in on-board power systems [6];
• Policy incentives: China’s third-generation semiconductor industry support policies [6].

• Technological competition: Rapid iteration in the GaN field, alternative technologies like SiC may impact market share [6];
• Supply chain dependence: Geopolitical risks on imports of wafer raw materials and equipment [0];
• Partner dependence: Changes in NVIDIA cooperation may affect business [5];
• Stock price volatility: Short-term market sentiment leads to large price fluctuations [4][10].

Innoscience has become a third-generation semiconductor target in Hong Kong stocks due to its technological leadership, IDM model, and strategic partnerships. The growth in market capitalization reflects market confidence in the prospects of the GaN industry, but attention should be paid to technological competition, supply chain stability, and market sentiment. This report provides an objective analysis and does not constitute investment advice.