Investment Rating - The industry investment rating is "Recommended," indicating a positive outlook for the industry fundamentals and expected outperformance against the benchmark index [29]. Core Insights - Wolfspeed, a leading global supplier of SiC substrates, is reportedly preparing to file for bankruptcy, which has led to a significant drop in its stock price by over 50% [3][4]. - In contrast, Tianyue Advanced, a domestic SiC substrate company, is projected to achieve approximately 240millioninrevenuefor2024,representinga41560 million, down approximately 8% year-on-year, with a net loss of about 950million,markinga37.77.57 billion, with a net asset value of only 210million,indicatingacumulativelossofapproximately3.87 billion [5][6]. Section 2: Domestic Competitors' Performance - Tianyue Advanced's revenue for 2024 is expected to be around 240million,withanetprofitof179millionRMB,markingasignificantimprovementinprofitability[8].−Thereportemphasizesthatdomesticcompanieshavemadesubstantialadvancementsintechnology,withseveralfirmsshowcasing12−inchSiCsubstratesin2024,indicatingthattheyhavecaughtupwithinternationalcompetitors[14][17].Section3:MarketDynamicsandPriceCompetition−TheglobalsalesscaleoftheN−type/conductiveSiCsubstrateindustryisprojectedtobe1.04 billion in 2024, a decrease of about 9% year-on-year, with Wolfspeed holding a market share of approximately 33.7% [18][19]. - If Wolfspeed files for bankruptcy, it is expected to alleviate the current price competition in the SiC substrate market, benefiting domestic manufacturers significantly [18]. Section 4: Long-term Demand Outlook - The report forecasts a sustained long-term growth in demand for SiC chips, primarily driven by the electric vehicle sector, which accounts for about 70% of the downstream market, and the renewable energy sector, which exceeds 10% [23][25].
