InnoScience Technology: China conference takeaways: AI power upgrade drives promising GaN demand

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InnoScience Technology: China conference takeaways: AI power upgrade drives promising GaN demand

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InnoScience Technology

China conference takeaways: AI power

upgrade drives promising GaN demand

Maintain Rating: BUY | PO: 92.00 HKD | Price: 86.20 HKD

Key takeaways from China Conference meeting 15 May 2026

We hosted InnoScience management during our China Conference in Shenzhen on 13 Equity

May (Wed). Key takeaways: (1) AI infrastructure shifting toward energy efficiency drives

step-up in GaN content, with megawatt-level racks implying meaningful value uplift for Daley Li, CFA >> Research Analyst

GaN power devices; (2) management sees clear margin improvement outlook, reiterating Merrill Lynch (Hong Kong)

FY26E targeted GPM to 15%+ with longer-term potential of c.45-50%; (3) +852daley.li2@bofa.com3508 5365

manufacturing capability (particularly yield and scale) remains a key barrier for the Owen Wang >>

industry, reinforcing competitive advantages for leading companies, such as Research Analyst

Merrill Lynch (Hong Kong)

InnoScience. We maintain our Buy rating. +852 3508 6533

owen.wang2@bofa.com

GaN content value uplift with roll-out of next-gen AI infra Harry Zhuang >>

Research Analyst

Management highlighted that competition in AI infrastructure is increasingly shifting Merrill Lynch (Hong Kong)

from computing performance to energy efficiency, driving demand for higher power +852 3508 7998

harry.zhuang@bofa.com

density solutions. As data center architectures evolve from kilowatt- to megawatt-level

racks (e.g., ~1MW per rack under NVIDIA-led 800V HVDC architecture), GaN devices are

becoming a key enabler given their high switching frequency and ability to reduce

passive components. Management indicated that a single megawatt-class rack could Stock Data