Core Viewpoint - The article discusses the advancements and challenges in the silicon carbide (SiC) wafer market, particularly focusing on GlobalWafers' development of 12-inch square SiC wafers and the competitive landscape influenced by pricing pressures from Chinese manufacturers [1][2]. Group 1: Company Developments - GlobalWafers has announced the capability to develop 12-inch square SiC wafers, which requires not only process capabilities but also new equipment due to the lack of existing solutions [1]. - The company has developed a cutting method for 12-inch SiC wafers that does not rely on laser technology, differentiating itself from competitors [1]. - GlobalWafers anticipates launching its 12-inch SiC wafers this year, aiming to penetrate application fields directly [1]. Group 2: Market Dynamics - The pricing of 6-inch SiC wafers has seen the most significant decline, followed by 8-inch wafers, with the overall market facing intense competition and price pressures [2]. - GlobalWafers' revenue from SiC is expected to remain below 10% of total revenue next year, despite volume growth, indicating ongoing challenges with average selling prices (ASP) [2]. - The SiC market is compared to the solar energy sector, where prices are dropping but demand is expected to grow due to the material's superior performance in high-voltage and heat dissipation applications [2]. Group 3: Competitive Landscape - Wolfspeed, a major player in the SiC market with a 33% global market share, faces challenges due to high production costs and aggressive pricing from Chinese competitors [2][3]. - If Wolfspeed struggles, customers may seek alternatives, presenting an opportunity for GlobalWafers to capture market share [3]. - Infineon has successfully developed 12-inch SiC wafers, which could enhance its competitiveness in the electric vehicle market and other applications, indicating a trend towards larger wafer sizes in the industry [3].

Core Viewpoint - GlobalWafers faces significant challenges in its development due to dual threats from market competition and investment pressures, leading to a decline in stock price from over 600 TWD to around 300 TWD this year [2]. Group 1: Financial Performance - GlobalWafers plans to invest 4 billion USD in expanding its advanced 12-inch silicon wafer manufacturing facility in Texas, despite a projected revenue decline of 11.4% to 62.6 billion TWD in 2024 compared to 2023 [2][3]. - The company's earnings per share (EPS) for 2024 is expected to be 21.06 TWD, more than halving from the previous year, with Q1 2024 EPS at 3.05 TWD, a decline of over 60% year-on-year [2][3]. Group 2: Market Dynamics - The demand for 8-inch wafers is limited, and the market is facing low-price competition from China, which is expanding its silicon wafer production capacity [4]. - GlobalWafers' revenue is primarily from mature 8-inch wafers, and the transition to advanced 12-inch wafers is contingent on new capacities in Europe and the US [3][4]. Group 3: Strategic Initiatives - The company is focusing on SOI (Silicon On Insulator) wafers, which are critical for silicon photonics packaging, and plans to establish the first and only 12-inch SOI wafer production line in Missouri [5][6]. - The SOI wafer market is projected to grow at a compound annual growth rate of 13.6%, reaching 10.5 billion USD by 2032, indicating a strategic opportunity for GlobalWafers [6]. Group 4: Impact of Subsidiary Performance - GlobalWafers holds a 13.67% stake in Siltronic AG, which reported a revenue decline of 6.7% to 1.41 billion EUR and a significant drop in EPS by 65.9% [6][7]. - The performance of Siltronic AG negatively impacts GlobalWafers' financials, with potential EPS impact exceeding 4 TWD if Siltronic's stock price drops significantly [7].