Goldman Sachs on CR Micro (688396): Expanding AI Server Power Supply and Optical Module Exposure with 12-Inch Capacity Ramp
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
Goldman Sachs has initiated coverage on CR Micro (688396) with a Buy rating and a target price of RMB 58, citing a compelling product mix transformation driven by 12-inch capacity expansion and strategic entry into AI server power supply and optical module markets.
The company is actively constructing a 12-inch wafer production line, with monthly capacity expected to reach 30,000 wafers by late 2026 and scale to 60,000 wafers by 2028. This capacity ramp primarily targets power devices and analog chips, aligning with broader domestic substitution trends in the consumer electronics and industrial sectors.
CR Micro has successfully penetrated the AI server power management chip supply chain. Goldman Sachs projects related revenue will reach RMB 500 million in 2025 and could surge to RMB 2 billion by 2028. Additionally, the firm notes the company's expanding optical module business, specifically providing VCSEL driver chips, where revenue is forecasted to grow from roughly RMB 200 million in 2025 to RMB 800 million by 2028.
Total revenue is projected to reach RMB 14 billion in 2026, with gross margins expanding from 28% in 2024 to 32% in 2025, driven by portfolio optimization. The firm forecasts an 18% revenue compound annual growth rate from 2026 to 2028, noting that current valuation remains attractive.
Key exhibits
Exhibit 1
Exhibit 2
Exhibit 3
