StarPower Semiconductor Ltd: Cyclical recovery in price; move to EW

Research evidence excerpt

StarPower Semiconductor Ltd: Cyclical recovery in price; move to EW

Idea

May 14, 2026 01:37 PM GMT

Morgan Stanley Asia Limited+MStarPower Semiconductor Ltd | Asia Pacific Daisy Dai, CFA

Equity Analyst

Cyclical recovery in price; move Daisy.Dai@morganstanley.comMorgan Stanley Taiwan Limited+ +852 2848-7310

Charlie Chan

Equity Analystto EW Charlie.Chan@morganstanley.com +886 2 2730-1725

Daniel Yen, CFA What’s Changed

StarPower Semiconductor Ltd (603290.SS) From To Daniel.Yen@morganstanley.com +886 2 2730-2863

Rating Overweight Equal-weight Tiffany Yeh

Price Target Rmb105.00 Rmb120.00 Equity Analyst

Tiffany.Yeh@morganstanley.com +886 2 7712-3032

Lucas Wang

The worst of the IGBT cycle is over, but we expect StarPower’s Research Associate

gross margin to be structurally lower due to the depreciation Lucas.Wang@morganstanley.com +886 2 2730-2875

cost burden and limited ability to pass through cost increases. Morgan Stanley Asia Limited+

Ethan Jia

New businesses such as MCU and SiC will take time to generate Research Associate

meaningful revenue contributions. Ethan.Jia@morganstanley.com +852 3963-2287

StarPower Semiconductor Ltd (603290.SS, 603290 CG)

Cyclical recovery underway in IGBT, while headwinds remain. IGBT pricing has

Greater China Technology Semiconductors | China

trended down for 2.5 years since 1Q23, as local players aggressively added capacity.

Stock Rating Equal-weight

However, foreign companies started to raise prices this year on the back of capacity Industry View Attractive

reallocation to AI-related MOS and as utilization at local peers has reached high Price target Rmb120.00

Up/downside to price target (%) (4)

levels – therefore we think the worst is over for IGBT. Two headwinds remain: weak Shr price, close (May 14, 2026) Rmb124.46