Core Viewpoint - The strategic partnership between Tianyu Semiconductor and EYEQ Lab Inc. marks a significant step in Tianyu's international expansion, focusing on the supply of high-quality silicon carbide (SiC) epitaxial wafers for power semiconductor applications [1][2]. Group 1: Strategic Cooperation - Tianyu Semiconductor has signed a three-year strategic cooperation agreement with EYEQ Lab, prioritizing the procurement of SiC epitaxial wafers [1]. - The agreement includes the supply of high-specification epitaxial products ranging from 6 to 8 inches and voltage ratings from 650V to 20,000V, supporting EYEQ Lab's R&D and production [1]. - This partnership establishes a deep cooperation framework around epitaxial wafer supply and application, enhancing Tianyu's presence in the international market [1][2]. Group 2: Market Positioning - The Korean market has been dominated by European, American, and Japanese manufacturers, particularly in the high-end SiC epitaxial wafer sector, where stability and consistency are crucial [2]. - Tianyu's entry into the Korean customer system signifies a shift in its international strategy from "product export" to "system integration" [2]. - The collaboration enhances Tianyu's presence in the Asian high-end power semiconductor supply chain and lays a solid foundation for future expansion in Japan, South Korea, and Southeast Asia [2]. Group 3: Technological Capabilities - Tianyu Semiconductor is recognized as China's largest manufacturer of SiC epitaxial wafers, with industry-leading maturity in 6-8 inch wafer processes [3]. - The company has achieved breakthroughs in key technologies such as thick epitaxy, high-voltage epitaxy, and low defect density control, with stable mass production capabilities for 20kV products [3]. - These technological advantages are critical for downstream device performance and yield, making Tianyu a trusted partner for international clients [3]. Group 4: Production Capacity and Global Strategy - The cooperation signals a substantial advancement in Tianyu's global layout, with the new Dongguan base expected to release production capacity over the next two years [5]. - The stable international orders will enhance capacity utilization, optimize cost structures, and support the company's bargaining power in the global market [5]. - Tianyu is forming a development path centered on "technological leadership, capacity expansion, and global layout," ensuring competitiveness in the high-end epitaxial wafer market [5]. Group 5: Future Outlook - Tianyu plans to deepen cooperation with clients in Japan, South Korea, Europe, and North America, aiming to play a more strategic role in the global third-generation semiconductor supply chain [6]. - The partnership with EYEQ Lab is a milestone in Tianyu's globalization process, establishing a stronger foundation for future international competition [6].

Industry Overview - The silicon carbide (SiC) market is rapidly expanding due to growth in sectors such as electric vehicles, photovoltaic energy storage, data centers, and AR glasses. The global sales of SiC power semiconductor devices are projected to reach $2.6 billion in 2024, with a compound annual growth rate (CAGR) of 45.4% from 2020 to 2024. By 2029, the market size is expected to increase to $13.6 billion, with the penetration rate in the global power semiconductor market rising from 4.9% in 2024 to 17.1% in 2029 [1][4]. Company Performance - Hantian Technology (Xiamen) Co., Ltd. is a leading player in the global SiC epitaxy industry, holding a significant market position. In 2024, the company is expected to capture 31.6% of the global sales volume and 29.2% of the revenue, both ranking first globally. Hantian Technology has been at the forefront of industry innovation, being the first in China to achieve commercial production of 3-inch, 4-inch, 6-inch, and 8-inch SiC epitaxy wafers [6][7]. Revenue Trends - Hantian Technology's revenue has shown volatility, with total revenues of 441 million yuan in 2022, 1.143 billion yuan in 2023, and a projected 974 million yuan in 2024. The revenue structure indicates that sales of epitaxy wafers have consistently been the largest source of income, increasing from 63% in 2022 to 86.4% in 2024. Conversely, the contribution from epitaxy wafer foundry services has declined significantly [7][10]. Market Dynamics - The price of SiC epitaxy wafers has been on a downward trend due to reduced raw material costs and technological advancements. For instance, the average price of 6-inch SiC epitaxy wafers is expected to drop from 11,400 yuan in 2020 to approximately 4,400 yuan by 2029, indicating a potential decline of nearly 40% [11][12]. Strategic Initiatives - To ensure sustained growth, Hantian Technology is focusing on technological innovation and scaling up production to reduce costs. The company has made significant progress in 8-inch SiC epitaxy technology, which is anticipated to enhance production efficiency and lower unit costs. By expanding the production of 8-inch wafers, Hantian Technology aims to capture a larger market share and improve profitability [12][13].