Summary of Innoscience Conference Call Company Overview - **Company**: Innoscience (英诺赛科) - **Industry**: Gallium Nitride (GaN) Power Chips - **Market Position**: Leading player in the GaN power chip sector, expected to benefit from long-term growth drivers such as AI data centers, humanoid robots, and electric vehicles [1][2] Key Insights Market Potential - **GaN Market Size**: Projected to reach $346 million in 2024, compared to the overall semiconductor market of $631 billion [1] - **Growth Rate**: Expected to achieve a compound annual growth rate (CAGR) of 49% from 2024 to 2029, driven by factors including: - 800V high-voltage direct current (HVDC) power conversion in data centers - Increased servo motor usage in humanoid robots - Growing applications in electric vehicles (onboard chargers, LiDAR, DC-DC converters) - Demand for fast charging in consumer electronics [1] Competitive Landscape - **Market Share**: Innoscience is projected to capture 31% of the GaN revenue market share in 2024 [10] - **Business Model**: Utilizes a vertically integrated manufacturing model (IDM), providing advantages in technology synchronization, capacity stability, and cost efficiency [2] - **Strategic Partnerships**: Collaborations with leading clients such as NVIDIA for AI data centers, Hesai Technology and Suton for electric vehicles, and Zhiyuan Robotics for humanoid robots [2] Financial Performance - **Stock Performance**: Since the announcement of the partnership with NVIDIA on July 31, 2025, the stock price has nearly doubled, reflecting high market expectations [3][11] - **Valuation**: Current valuation at 34 times the expected sales for 2026, above the historical average of 26 times since its listing in December 2024 [3][10] - **Profitability Outlook**: Expected to remain in a loss position until 2025/26, with a gradual improvement in gross margins anticipated by 2026/27 [2][16] Risks and Challenges - **Competition**: Other manufacturers like Infineon are also expanding capacity, which may pressure pricing and profitability [2][14] - **Capacity Utilization**: Global GaN capacity is expected to grow from 100,000 wafers per month in 2024 to 345,000 in 2029, but utilization rates may remain below 60% over the next five years [2][14] - **Market Validation**: Uncertainty exists regarding the validation of Innoscience's products by NVIDIA and the allocation of orders, which could impact revenue growth [14][21] Investment Recommendation - **Rating**: Initiated coverage with an Equal-weight (EW) rating and a target price of HKD 95 [3][10] - **Investment Strategy**: Suggested to adopt a wait-and-see approach due to the current stock price reflecting high expectations and potential risks associated with competition and market validation [10][11] Additional Considerations - **Long-term Growth Potential**: Despite current challenges, the long-term outlook for Innoscience remains positive due to the high growth potential of the GaN market [1][2] - **Market Dynamics**: The balance between supply and demand will be crucial in determining pricing and profitability in the GaN sector over the coming years [14][15]

智通财经APP获悉，周一，纳微半导体(NVTS.US)股价走高，截至发稿，该股涨超10%，报7.1美元。消 息面上，Meridian基金管理公司ArrowMark Partners发布了旗下"Meridian Contrarian Fund"2025年第二季 度投资者信。信中重点提到纳微半导体，该公司成立于2013年，专注于氮化镓功率芯片的设计与制造， 在高效能能源半导体领域拥有技术优势。过去52周其股价累计上涨152.33%。基金表示，在与英伟达 (NVDA.US)等潜在客户达成技术合作消息推动下，纳微半导体股价表现亮眼。尽管二季度减持部分仓 位进行风险管理，基金仍看好其长期前景。 ...

周一，纳微半导体(NVTS.US)股价走高，截至发稿，该股涨超10%，报7.1美元。消息面上，Meridian基 金管理公司ArrowMark Partners发布了旗下"Meridian Contrarian Fund"2025年第二季度投资者信。信中重 点提到纳微半导体，该公司成立于2013年，专注于氮化镓功率芯片的设计与制造，在高效能能源半导体 领域拥有技术优势。过去52周其股价累计上涨152.33%。基金表示，在与英伟达(NVDA.US)等潜在客户 达成技术合作消息推动下，纳微半导体股价表现亮眼。尽管二季度减持部分仓位进行风险管理，基金仍 看好其长期前景。 ...

Core Viewpoint - Navitas Semiconductor's recent collaboration document has caused significant disruption in the global GaN semiconductor industry, revealing TSMC's plan to exit GaN wafer production by July 2027, while Navitas partners with PSMC to advance 8-inch silicon-based GaN technology mass production [1] Group 1: TSMC's GaN Journey - TSMC has been a key player in the commercialization of GaN technology since 2011, leveraging its CMOS manufacturing experience to develop GaN-on-Si technology [2] - By 2015, TSMC achieved mass production of GaN-on-Si, establishing a comprehensive technology platform across various voltage levels, including 650V, 100V, and 40V [2][3] - TSMC captured 40% of the global GaN wafer foundry market by 2023, establishing a competitive landscape with X-Fab and Episil [3] Group 2: TSMC's Withdrawal - TSMC announced its decision to gradually exit the GaN business over the next two years, citing a reassessment of business priorities and a shift towards higher-margin sectors like AI chips [4][5] - The company’s GaN production capacity was relatively small, with a monthly output of only 3,000-4,000 6-inch wafers, leading to minimal revenue contribution [4] - Increased competition and price wars, particularly from Chinese IDM manufacturers like Innoscience, have pressured TSMC's profit margins in the GaN market [6] Group 3: Supply Chain Risks - Recent export controls on gallium and germanium by the Chinese government have introduced uncertainties in the supply chain, impacting costs for GaN production [7][8] Group 4: Industry Transition - Following TSMC's exit, Navitas Semiconductor plans to transition its production to PSMC, utilizing 8-inch lines to produce GaN-on-Si devices, targeting the 100V to 650V voltage range [12] - Infineon is advancing its 300mm GaN wafer IDM production strategy, aiming to capitalize on the growing demand for GaN semiconductors [13][14] - The shift in the industry landscape may accelerate the transition from "technological breakthroughs" to "scale implementation" in the GaN sector [15]