Suqian Unitech Corp. Ltd. Cl A

Indium phosphide concept stocks were repeatedly active on August 18. Suqian Liansheng hit the daily limit up intraday before the limit was broken, and as of press time it was up 5.83 percent at 17.42 yuan per share. In terms of news, according to a report by Taiwan Economic Daily, driven by the explosive demand for AI optical communications, indium phosphide substrates and epitaxy are in severe short supply, and prices will rise by more than 10 percent again in the fourth quarter, the largest single increase in history. Suppliers said bluntly that even having money may not guarantee purchases. Indium phosphide substrate prices entered an upward channel starting in the fourth quarter of 2025 and have already been raised three times so far, with a fourth consecutive increase about to arrive. According to data from Shanghai Metals Market, on August 10 the average price of 4-inch indium phosphide substrates had reached 6,500 yuan per wafer, up about 50 percent from the beginning of the year, while upstream refined indium quotes had risen by more than 80 percent from the beginning of the year. SDIC Securities analysis pointed out that global indium phosphide demand is surging but supply is severely constrained. In 2026, effective production capacity will be able to meet only about 30 percent of demand, leaving a gap of more than 70 percent. The purification technology barriers for upstream raw materials high-purity indium and 7N-grade red phosphorus are extremely high, leaving enormous room for domestic substitution.

A-share indium phosphide concept stocks rallied collectively on August 6. Bojie Co., Yunnan Germanium each hit their third consecutive daily limit up, Youyan New Materials rose for a second straight day, and Oulai New Materials, Xingye Technology, Suqian Liansheng, and Haite High-Tech were among the top gainers. The catalyst was Nvidia's forecast that global indium phosphide wafer demand will surge roughly 20-fold from 2026 to 2030. However, expanding indium phosphide substrate production is extremely difficult: a single production line requires over 1.2 billion yuan in investment, and the expansion cycle lasts three to five years, meaning new supply will lag far behind demand growth. Indium phosphide is a classic III-V compound semiconductor material with strong suitability for optical communications and high-speed electronic devices. The explosion in AI computing power demand is directly driving continuous expansion of its market size. The supply side faces rigid constraints. Indium is a rare dispersed non-ferrous metal, with about 90 percent of primary indium coming as a byproduct of zinc smelting. China holds the world's largest indium reserves, with proven reserves of about 20,000 tonnes, accounting for 75 percent of global recoverable reserves. China has also imposed export controls on indium phosphide and capped annual indium exports at no more than 30 percent of annual output. Multiple brokerages believe that upstream indium resources are subject to the dual constraints of being a byproduct and under export controls, and that indium phosphide substrates, as the most upstream manufacturing segment of the supply chain, are currently the most critical bottleneck in the AI optical module chain. The supply-demand imbalance is unlikely to ease in the short term, and upstream scarce resources as well as companies with large-size substrate mass production capabilities will benefit over the long term.

Suqian Liansheng announced that the company recently obtained two invention patent certificates issued by the National Intellectual Property Administration. The patents are for a catalyst for synthesizing triacetonamine in a fixed bed and its preparation method, and a graphite felt anode material and its preparation method and application. The patent application dates are April 17, 2024 and June 26, 2023 respectively, with both authorized and announced on July 24, 2026. The patent term is 20 years from the application date.