HUAXI Securities·2025-11-05 11:10Investment Rating - The report suggests a positive investment outlook for the SiC industry, indicating significant growth potential due to the anticipated adoption of SiC in advanced packaging technologies by major companies like NVIDIA and TSMC [6]. Core Insights - The report emphasizes the critical need for improved thermal management solutions in AI computing chips, particularly in the context of CoWoS packaging, which is currently facing challenges due to rising power demands [3][40]. - SiC is identified as a promising alternative material for CoWoS interposers, offering superior thermal conductivity and structural integrity compared to traditional silicon and glass materials [4][86]. - The potential for the Chinese mainland SiC industry to benefit significantly from the shift towards SiC interposers is highlighted, given its advantages in investment scale, production costs, and downstream support [5][6]. Summary by Sections 1. NVIDIA and TSMC's Consideration of SiC - NVIDIA plans to adopt 12-inch SiC substrates in its next-generation GPU packaging by 2027, indicating a strategic shift towards advanced materials for better performance [2][9]. 2. Need for CoWoS Thermal Management - The report discusses the increasing power requirements of AI chips, with NVIDIA's H100 GPU exceeding 700W, necessitating enhanced cooling solutions to manage heat effectively [15][22]. 3. SiC as a Preferred Interposer Material - SiC's thermal conductivity is 2-3 times that of silicon, making it an ideal candidate for interposers in CoWoS packaging, which is crucial for high-performance computing applications [4][86]. 4. Benefits for China's SiC Industry - If CoWoS adopts SiC interposers, the demand could exceed 230,000 12-inch SiC substrates by 2030, presenting a substantial opportunity for the Chinese SiC supply chain [5][6]. 5. Overview of SiC Substrate and Equipment Companies - Key beneficiaries of the SiC market growth include companies like Jingcheng Machinery, Jing Sheng Co., Tianyue Advanced, and others, which are positioned to capitalize on the anticipated demand for SiC substrates and related equipment [6]. 6. Investment Recommendations - The report recommends investing in companies involved in SiC substrate production and equipment manufacturing, as they are expected to benefit from the industry's transition towards SiC technology [6].