Summary of the Conference Call for Fuxing Technology Industry and Company Overview - **Company**: Fuxing Technology - **Industry**: Semiconductor and Optical Module Technology, specifically in thermoelectric cooling technology for applications in consumer electronics, telecommunications (5G optical modules), and automotive sectors. Key Points and Arguments 1. **Market Potential**: Fuxing Technology's thermoelectric cooling (TEC) technology has significant application prospects in consumer electronics, telecommunications, and automotive sectors, particularly in the 400G/800G optical module market where the TEC value increases with bandwidth. The value of a single TEC for a 400G optical module is approximately $3-5 [2][9][14]. 2. **Project Validation**: The company has engaged in project validation with leading overseas companies and domestic manufacturers like Xuchuang, which is currently in the sample verification stage. New Yisheng is in communication, aiming to replace Japan's Daiwa Microtec products. Expected sales from these leading companies in 2025 will not exceed 2% of the overall revenue in 2024 [2][10][11]. 3. **Technological Development**: Fuxing Technology has developed three material preparation technologies: zone melting, powder hot pressing, and hot extrusion. The current monthly delivery capacity is 600,000 pieces, with plans to expand to 1 million pieces by Q3 2025. The global demand for Microtec in data communication is expected to be around 30 million pieces in 2025 [2][4][27][32]. 4. **Competitive Position**: The company has increased its market share in the telecommunications sector from 10%-15% to over 60%-70%. There is currently no shortage in the supply-demand situation for high-speed optical modules in the domestic market [4][12][20]. 5. **Strategic Partnerships**: Fuxing Technology has entered the supply chain of major companies in the energy storage sector, including CATL and EVE Energy, and is optimistic about future growth in this market [4][34]. 6. **Market Dynamics**: The demand for TEC does not align directly with the overall demand for optical modules, but the total demand is expected to increase, primarily driven by the overall growth of optical modules [14][20]. 7. **Product Pricing Strategy**: The company maintains a competitive edge in pricing through strategic collaboration with clients, ensuring that product prices remain competitive within the industry [31]. 8. **Future Outlook**: The global market demand for Microtec in data communication is projected to reach approximately 30 million pieces by 2025, with potential growth to 40-50 million pieces depending on market conditions and technological requirements [32]. Additional Important Information 1. **Impact of Silicon Photonics**: While silicon photonics technology is developing rapidly, EML solutions still hold advantages in specific scenarios, indicating that silicon photonics will not completely replace EML [14]. 2. **Supply Chain Security**: The complexity of optical module production necessitates a multi-supplier strategy to ensure supply chain security, especially in the high-speed optical module market [21]. 3. **Shareholder Actions**: The recent share reduction by major shareholders is attributed to normal capital needs and is not expected to impact the company's development significantly. The company is open to welcoming new shareholders and plans to implement equity incentives [16][25]. 4. **Future Product Development**: The company is exploring applications in new markets, including automotive laser radar and head-up displays, as well as potential future applications in robotics [28]. This summary encapsulates the key insights from the conference call, highlighting Fuxing Technology's strategic positioning, market opportunities, and technological advancements within the semiconductor and optical module industry.