Core Viewpoint - Quartz glass, primarily composed of silicon dioxide, is an essential material in modern strategic emerging industries such as information technology, optics, photovoltaics, semiconductors, and aerospace due to its superior properties like high transparency, high-temperature resistance, low expansion coefficient, strong chemical stability, high purity, and excellent electrical insulation [1]. Industry Chain of Quartz Glass Products - The quartz glass products can be categorized based on application fields, including semiconductor quartz products, photovoltaic solar quartz products, optical fiber quartz products, electric light source quartz products, optical quartz products, and others [2][3]. Semiconductor Sector - The semiconductor sector is the largest application area for quartz products, where high purity and chemical stability of quartz glass make it an indispensable material in semiconductor integrated circuit manufacturing [3][5]. - In the semiconductor industry, quartz products are used in various processes such as single crystal growth, wafer processing, integrated circuit wafer production, and packaging. Key quartz products include quartz crucibles, quartz plates, quartz rings, and quartz diffusion tubes [5][6]. - The demand for quartz glass is expected to grow significantly due to the increasing domestic semiconductor market and the push for domestic substitution in the semiconductor supply chain [6]. Photovoltaic Sector - In photovoltaic manufacturing, quartz products like quartz crucibles are crucial for the production of monocrystalline and polycrystalline silicon. The performance of quartz crucibles directly affects the quality of crystal pulling [8][10]. - The rapid development of the photovoltaic industry has led to a significant increase in demand for high-quality quartz products, particularly in the N-type high-efficiency monocrystalline segment [10]. Optical Fiber Communication Sector - Quartz glass materials are essential in the production of optical fiber preform rods and other supporting materials. Over 95% of the components in optical fiber preform rods are high-purity quartz products [12]. - The rapid growth of the optical fiber and cable industry in China has established it as the largest in the world, leading to an increasing demand for quartz rods and tubes in the coming years [12]. Optical and Electric Light Source Sector - Optical quartz glass is widely used in various optical applications due to its high-temperature resistance and low expansion rate. It is used in telescopes, laboratory optical equipment, communication devices, and projection displays [14]. - The demand for quartz glass in electric light sources is expected to remain stable as technology advances and production scales increase [14]. Conclusion - The quartz products industry is poised for significant growth as high-tech industries such as semiconductors, optical fiber communication, photovoltaics, electric light sources, and optical instruments continue to develop [16].

Summary of Key Points from the Conference Call Company and Industry Overview - The conference call discusses **Xingyu Co., Ltd.**, a company in the **semiconductor-grade quartz sand** industry, which has recently become the third global supplier, breaking the monopoly held by companies from the US and Norway [2][4][5]. Core Insights and Arguments - **Market Potential**: The semiconductor quartz materials market is projected to reach **120-150 billion RMB**, potentially growing to **250 billion RMB** in the next three years, with intense competition among six leading companies including Xingyu and Philihua [2][5][16]. - **Application of Quartz Materials**: Quartz materials are extensively used in diffusion and etching equipment, with new and existing demand each accounting for **50%** of the total [2][6]. - **Certification and Supply Chain**: To ensure supply chain security, wafer manufacturers are increasing quartz material certifications and prefer integrated production companies, benefiting Xingyu, which has a full industry chain advantage [2][12]. - **Impact of Tariff Adjustments**: Recent tariff adjustments have increased the price of imported quartz sand in the US, prompting domestic customers to shift towards domestic semiconductor-grade quartz sand, which benefits Xingyu [2][15]. - **Future Demand Projections**: By **2030**, the demand for semiconductor-grade quartz sand is expected to reach **50,000 tons/year**, with Xingyu aiming for a **1/3 market share**, translating to a profit of approximately **750 million RMB** [2][19]. Additional Important Insights - **Business Structure**: Xingyu's business is divided into three main segments: semiconductor quartz materials, photovoltaic quartz sand, and other products like optical fibers. The semiconductor segment is expected to contribute **60-70%** of total profits in 2025 [3]. - **Recent Growth**: Xingyu has seen significant revenue growth in the semiconductor sector, from **50 million RMB in 2019** to an expected **600 million RMB in 2024**, marking a **12-fold increase** [11]. - **Market Dynamics**: The semiconductor materials segment is expected to maintain a compound annual growth rate of about **10%**, with a market capacity of **250 billion RMB** in the coming years [16][18]. - **Photovoltaic Industry Recovery**: The photovoltaic sector is recovering from a downturn, with rising prices for high-purity quartz sand expected to boost sales for companies like Xingyu [20][27]. - **Domestic Production and Certification**: The domestic semiconductor industry is rapidly advancing in localization, with significant progress in certifying domestic quartz sand, expected to dominate the market by **2026** [29]. This summary encapsulates the critical insights from the conference call, highlighting the strategic positioning of Xingyu Co., Ltd. within the semiconductor-grade quartz sand market and its implications for future growth and market dynamics.