--- title: "China Resources Micro says AI servers hit the power wall before the GPU wall, Q3 results Oct. 30" description: "CR Micro chairman He Xiaolong told a Shenzhen expo that power conversion, not compute chips, now caps how far AI servers can scale, and his company has a silicon-carbide part built for that exact job, sampling now. The first hard count of whether it pays lands with third-quarter results on October 30." publisher: "The Inference" section: "Chips" published: 2026-10-23T13:03:26.464Z modified: 2026-10-23T13:03:26.464Z canonical: https://theinference.org/article/china-resources-micro-says-ai-servers-hit-the-power-wall-before-the-gpu-wall-q3-results-oct-30 language: en keywords: "Chips, Power Semiconductors, Silicon Carbide, AI Data Centers, China" --- # China Resources Micro says AI servers hit the power wall before the GPU wall, Q3 results Oct. 30 > CR Micro chairman He Xiaolong told a Shenzhen expo that power conversion, not compute chips, now caps how far AI servers can scale, and his company has a silicon-carbide part built for that exact job, sampling now. The first hard count of whether it pays lands with third-quarter results on October 30. The chip that decides how many AI servers China can build this decade may not be a GPU. At the Bay Area Semiconductor expo in Shenzhen, held October 14 to 16, He Xiaolong, chairman of [China Resources Microelectronics](https://theinference.org/markets/companies/china-resources-microelectronics) (CR Micro), the country's largest power-device maker [3], told the industry the binding constraint on AI servers is no longer the compute chip: [power-conversion efficiency and supply-architecture upgrades are "the core key" to scaling the next generation of AI servers](https://www.sohu.com/a/1088627830_115362) [1][2]. A traditional cloud rack drew about 12 kilowatts; current racks commonly run in the 100-kilowatt class, and AI racks burn past 130 [1][3]. *Chart: **AI racks draw ten times the power of a traditional cloud rack** Column chart of rack power rising from 12 kilowatts for a traditional cloud rack to about 100 kilowatts for current racks and past 130 kilowatts for AI racks.* *Typical rack power draw in kilowatts, as cited by CR Micro chairman He Xiaolong at the Bay Area Semiconductor expo: current racks commonly run in the 100 kW class, and AI racks burn past 130 kW. Source: 每日经济新闻 via Sohu. [1]* ## Every fix runs through a power chip He named four shifts: 800-volt high-voltage DC supply; commercial solid-state transformers, which convert 10-kilovolt medium-voltage AC straight to 800-volt DC at better than 98.5% efficiency; vertical power delivery mounted beneath the processor; and wide-bandgap materials such as silicon carbide (SiC) and gallium nitride (GaN) [1]. Market-research firm Yole, cited at the expo, sizes global power-semiconductor sales at $28.9 billion in 2025, rising to $43.3 billion by 2030 [1]. A Dadong Times think-tank forecast puts the solid-state-transformer niche at RMB 2.7 billion this year and RMB 91.5 billion in 2030, with AI datacenters in about a fifth of new installations by then [1]. ## The chip built for the job is still a sample CR Micro, ninth among the world's power-device firms and first in China, is an integrated device manufacturer: it designs and makes its own chips on 6-, 8- and 12-inch lines [1][3]. Its [October 9 investor-relations record](https://js.ifeng.com/c/8xBoRI8Ofam) is the substance behind the speech [3]. First-half SiC device and module revenue more than doubled year on year, and an integrated SiC MOSFET, a power-switching transistor custom-built for AI compute power supplies, has passed evaluation and is sampling [3]. The caveat sits in the same record: 85% of that SiC revenue came from cars and energy storage, not AI [3]. Its MOSFET, SiC and GaN parts already supply leading cloud providers, server makers and power-supply manufacturers, and its SiC ships in datacenter solid-state transformers today [3]. The AI-server power board has been Western incumbents' ground: [onsemi](https://theinference.org/markets/companies/onsemi), Infineon and [STMicroelectronics](https://theinference.org/markets/companies/stmicroelectronics) are the firms pushing through [2026's global power-chip price increases](https://theinference.org/article/onsemi-raises-prices-again-today-power-chip-lead-times-top-30-weeks-and-cr-micro-may-follow) [4]. If power delivery, not the GPU, caps the buildout, value shifts to whoever supplies that board; if not, the SiC push is a capital-hungry side bet on an auto-led cycle. ## Full fabs, an undecided market The first half delivered RMB 6.128 billion of revenue, up 17.44%, and net profit of RMB 722mn, up 113.23%, with lines full and nine months of order visibility [3][4]. Broker China Post Securities upgraded the shares to Buy on October 9 [4]; they slid anyway. The stock closed at CNY 55.10 on September 30, when it traded at 69.75 times trailing earnings [5], and closed 3.01% lower at CNY 48.32 on October 14 [6]. By October 22 it had recovered to CNY 51.00 [7], still half its 52-week high of CNY 101.99 [5]. *Chart: **Revenue is climbing into the October 30 test** Column chart of CR Micro quarterly revenue: RMB 2.85 billion in Q3 2025, RMB 3.27 billion in Q2 2026, and a consensus RMB 3.47 billion for Q3 2026.* *Quarterly revenue, RMB billions. Q3 2026 is the two-analyst consensus mean; other bars are reported figures. From CR Micro's October 9 investor-relations record and interim results, The Inference, and finanzen.net analyst estimates. [3][4][8]* *Chart: **The stock sits at half its 52-week high even with seven bullish analysts** Column chart of CR Micro's closing price on September 30, October 14 and October 22 2026, all far below the 52-week high.* *CR Micro (688396.SS) closing price in CNY on three dates through October 2026; the line marks the 52-week high of CNY 101.99. Sources: Yahoo Finance Canada, Global Banking & Finance Review, MarketScreener. [5][6][7]* ## The bear case is already on the record A year ago [the third quarter's net profit fell 14.7%](https://www.marketscreener.com/news/china-resources-microelectronics-schedules-payout-for-h1-dividend-ce785cdad08bf422) [7]. Peer Guangzhou foundry CanSemi raised RMB 6.16 billion in an IPO toward a third 12-inch line while losing RMB 1.14 billion in the first half, capacity funded at the top of the price cycle [4]. And no disclosure yet shows the AI part winning volume orders. ## The October 30 report prices the power story [Third-quarter results are expected on October 30](https://www.finanzen.net/nachricht/aktien/erste-schaetzungen-china-resources-microelectronics-gewaehrt-anlegern-blick-in-die-buecher-15985863) [8]. Three analysts see earnings per share of CNY 0.284 against 0.140 a year earlier; two see revenue up 21.56% to RMB 3.47 billion [8]. Seven rate the shares Outperform, average target CNY 64.06 [7]. CR Micro has raised prices twice this year and [said on October 20 the increases cover its wafer foundry](https://finance.sina.com.cn/jjxw/2026-10-20/doc-inivwitp6461359.shtml) too [4][9]. Read against doubled precious-metal input costs [4], the gross margin in that report prices the whole power story in one number. ## Takeaway CR Micro's chairman says power conversion, not compute chips, now caps AI server scaling; the October 30 third-quarter report, above all its gross margin, is the first hard test of whether the company's silicon-carbide bet pays. ## Sources 1. [每日经济新闻 via Sohu, "华润微电子董事长何小龙：AI算力的核心不只是算力芯片，电能转换、供电架构才是影响下一代AI服务器扩容的关键", 16 October 2026](https://www.sohu.com/a/1088627830_115362) 2. [通信世界 via Tencent News, "华润微电子何小龙：电能转换效率与供电架构升级成AI扩容关键", 17 October 2026](https://news.qq.com/rain/a/20261017A03M6B00) 3. [凤凰网江苏 (Phoenix New Media), "长三角芯潮 | 43年，华润微把"芯"扎根在无锡" (carrying the 9 October investor-relations record), 13 October 2026](https://js.ifeng.com/c/8xBoRI8Ofam) 4. [The Inference, "onsemi raises prices again today; power-chip lead times top 30 weeks and CR Micro may follow", 10 October 2026](https://theinference.org/article/onsemi-raises-prices-again-today-power-chip-lead-times-top-30-weeks-and-cr-micro-may-follow) 5. [Yahoo Finance Canada, "China Resources Microelectronics Limited (688396.SS) Stock Price, News, Quote & History", quote as of 30 September 2026 close (collected 3 October 2026)](https://ca.finance.yahoo.com/quote/688396.SS/) 6. [Global Banking & Finance Review, "China Resources Microelectronics down 3.01% on Wednesday", 14 October 2026](https://www.globalbankingandfinance.com/china-resources-microelectronics-688396-ss-falls-2026-10-14/) 7. [MarketScreener, China Resources Microelectronics quote and consensus page (22 October close CNY 51.00, Outperform consensus of 7 analysts, average target CNY 64.06, Q3 2025 net profit down 14.7%), accessed 23 October 2026](https://www.marketscreener.com/news/china-resources-microelectronics-schedules-payout-for-h1-dividend-ce785cdad08bf422) 8. [finanzen.net, "Erste Schätzungen: China Resources Microelectronics gewährt Anlegern Blick in die Bücher", 15 October 2026](https://www.finanzen.net/nachricht/aktien/erste-schaetzungen-china-resources-microelectronics-gewaehrt-anlegern-blick-in-die-buecher-15985863) 9. [新浪财经 (Sina Finance), "华润微：涨价包含晶圆代工领域", 20 October 2026](https://finance.sina.com.cn/jjxw/2026-10-20/doc-inivwitp6461359.shtml) --- China Resources Micro says AI servers hit the power wall before the GPU wall, Q3 results Oct. 30 — The Inference. Canonical: https://theinference.org/article/china-resources-micro-says-ai-servers-hit-the-power-wall-before-the-gpu-wall-q3-results-oct-30