Summary of Key Points from the Conference Call Industry Overview - The report focuses on the power semiconductor industry, specifically SiC (Silicon Carbide) and IGBT (Insulated Gate Bipolar Transistor) technologies, assessing the competitive landscape against Chinese manufacturers [1][7]. SiC Market Insights - The SiC industry is currently experiencing severe oversupply, but demand is projected to grow fourfold over the next five years, with a significant improvement in supply-demand balance expected in three years [2][8]. - SiC penetration in xEV (electric vehicles) is forecasted to increase from 19% in 2025 to 49% by 2030, driven by advancements in 800V technology and cost reductions [2][14]. - The cost of SiC devices is expected to decrease by 30% over the next five years due to improved yields and declining substrate prices [2][16]. - Substrate capacity is expanding, particularly due to Chinese entrants, which is expected to lower substrate prices [2][33]. - Utilization rates for front-end capacity are projected to rise from 50% in 2024 to 76% in 2028, indicating a recovery in the market [2][42]. IGBT Market Insights - The global IGBT market is expected to grow from USD 6.8 billion in 2024 to USD 8.3 billion by 2030, reflecting a 3% CAGR [3][62]. - Despite competition from local Chinese manufacturers, overseas suppliers are expected to maintain stable revenues, particularly in high-end markets [3][73]. - The market share of global players in China is projected to decline from 62% to 35%, but they will continue to dominate the high-end segment [3][62]. Company-Specific Insights - **Infineon**: Recognized as a leader in SiC and IGBT technology, expected to gain market share due to its product strength and low manufacturing costs [4][48]. - **Renesas**: Although it has canceled its SiC plans, it benefits indirectly through its stake in Wolfspeed, which is not reflected in its current valuation [4][56]. - **DISCO**: Anticipated to benefit from the improving SiC outlook and potential capacity expansions in the future [4][55]. Investment Implications - Infineon, DISCO, and Renesas are rated as outperformers, with target prices set at EUR 49.00, JPY 52,800, and JPY 2,300.00 respectively [6][54]. Additional Insights - The SiC market is expected to see significant growth in applications such as xEVs (64.5% contribution) and solar energy systems, with solar demand projected to reach 124 kwpy by 2030 [9][10]. - The report highlights the importance of SiC in high-voltage applications due to its superior power efficiency and thermal conductivity [17][19]. - The competitive landscape indicates that overseas suppliers will continue to dominate the SiC market, despite the emergence of Chinese players [47][53]. Conclusion - The power semiconductor market, particularly for SiC and IGBT technologies, is poised for growth despite current oversupply challenges. Key players like Infineon and DISCO are well-positioned to capitalize on this growth, while the competitive dynamics with Chinese manufacturers will continue to evolve.

Core Viewpoint - The company has established a comprehensive ultrasonic solution in the power semiconductor field, with successful mass production of various ultrasonic welding machines and equipment [1] Group 1: Product Offerings - The company offers a full range of ultrasonic solutions including ultrasonic terminal welding machines, ultrasonic PIN needle welding machines, ultrasonic bonders, and ultrasonic scanning microscopes [1] - All products have achieved mass production, indicating strong operational capabilities [1] Group 2: Partnerships - The company maintains good cooperation with well-known enterprises such as SAIC Infineon, CRRC Times, Zhenhua Technology, Hongwei Technology, Silan Microelectronics, and Chiplink Integration [1]

Investment Rating - The report maintains an "Overweight" (OW) rating on Yangjie Technology and StarPower Semiconductor, while it is "Equal-weight" (EW) on Silan Micro and "Underweight" (UW) on CR Micro [6][5][12]. Core Insights - Power semiconductor pricing has stabilized, but discounts to end customers will impact gross margins in 1Q25. Companies with higher automotive exposure and better operational efficiency are favored [1][5]. - Power discrete sales have shown signs of recovery, with a 10% year-over-year shipment growth recorded in February 2025. The blended average selling price (ASP) of IGBT is stabilizing, indicating a potential recovery in this segment [2][15]. - Chinese power semiconductor companies are capitalizing on automotive opportunities, with Yangjie Technology's automotive product sales growing over 60% in 2024, significantly outpacing its total revenue growth of 12% [3][5]. - SICC has increased its global market share in SiC substrates to 22.8% in 2024, and there are expectations for further growth in SiC devices due to local self-sufficiency being less than 10% [4][12]. Summary by Sections Pricing and Margins - Power semiconductor pricing has largely stabilized, but normal price discounts will affect gross margins in 1Q25 [1]. - StarPower's gross margin is expected to be the lowest quarterly level this year, with gradual improvement anticipated for the rest of the year [2][10]. Company Performance - Yangjie Technology is expected to see an 18% year-over-year revenue increase in 1Q25, although a 3% quarter-over-quarter decline is anticipated due to seasonality [11]. - StarPower's revenue is projected to grow by 19% in 2025, driven by strong demand in the Chinese EV market and its acquisition of MSCT [10][12]. - SICC's revenue is expected to decline by 6% quarter-over-quarter in 1Q25 due to seasonal factors, but gross margins are anticipated to remain stable [10]. Market Trends - The automotive sector is a significant growth driver for power semiconductors, with companies like Yangjie showcasing their automotive solutions at major trade fairs [3]. - The global market for SiC devices is expected to grow, with local players like UNT and Silan Micro making strides in production capacity [4]. Price Target Adjustments - Price targets for StarPower and SICC have been lowered to Rmb115 and Rmb77, respectively, reflecting changes in market conditions and pricing pressures [6][12].