Core Viewpoint - The Chinese semiconductor industry has experienced a financing boom in the past six months (August 2025 - January 2026), with capital focusing on key segments such as inference GPUs, AI chips, server chips, advanced packaging, and wide bandgap semiconductors [1]. Financing Events Overview Over 2 Billion RMB Financing Events - **Sunrise**: Completed approximately 3 billion RMB in strategic financing, focusing on inference GPUs, with plans for next-generation GPU development and ecosystem building [1]. 1-2 Billion RMB Financing Events - **Aixin Yuanzhi**: Secured over 1 billion RMB in C-round financing, with a post-investment valuation of 10.6 billion RMB, aiming to become the "first stock of China's edge AI chips" [3]. - **Borui Jingxin**: Received over 1 billion RMB in financing, focusing on ARM server chips and digital solutions for various industries [4]. 500 Million to 1 Billion RMB Financing Events - **Heizhima Intelligent**: Obtained 500 million RMB in strategic investment, focusing on edge AI and embodied intelligence [5][6]. - **Jindishi Technology**: Completed over 600 million RMB in B-round financing, focusing on RISC-V AI chips [7]. - **Zhizhan Technology**: Secured nearly 300 million RMB in C-round financing, focusing on silicon carbide power semiconductor devices [8]. - **Mingjia Semiconductor**: Completed 110 million RMB in A++ round financing, focusing on gallium oxide semiconductors [9]. - **Xiqian Semiconductor**: Achieved over 1 billion RMB in strategic financing, focusing on silicon-based capacitors and related technologies [11]. - **Xulun Technology**: Completed over 1 billion RMB in A3 and A4 round financing, focusing on advanced packaging materials [12]. - **Lanxin Computing Power**: Secured over 1 billion RMB in A-round financing, focusing on RISC-V architecture intelligent computing chips [13]. - **Liangxuan Technology**: Completed several hundred million RMB in C-round financing, focusing on quantum computing [14]. - **Ruishi Technology**: Achieved several hundred million RMB in C-round financing, focusing on semiconductor optical chips [15]. Financing Characteristics - Capital is concentrated in high-end chips and advanced materials, addressing critical areas such as inference GPUs and ARM server chips, while also covering wide bandgap semiconductors and advanced packaging materials [16]. - The financing scale is clear, with leading companies like Sunrise and Aixin Yuanzhi securing over 1 billion RMB, while over 70% of smaller "specialized and innovative" companies received financing in the 100 million RMB range [16]. - Local state-owned platforms and industrial funds are key investors, focusing on both financial returns and the improvement of the industrial chain [16]. - The financing companies align with the distribution of semiconductor industry clusters, with major cities like Beijing, Shanghai, and Shenzhen leading, while emerging cities like Chengdu are also gaining traction [16].

Core Insights - The global semiconductor industry is undergoing a technological iteration centered around silicon carbide (SiC) and gallium nitride (GaN), which are crucial for enhancing energy efficiency in the renewable energy sector [1] - Tianyu Semiconductor is set to enter the capital market, marking a significant milestone in its development and providing a high-quality investment opportunity in the hard technology sector [1] Industry Overview - The market for silicon carbide power semiconductor devices is projected to grow from $3.2 billion in 2024 to $15.8 billion by 2029, with a compound annual growth rate (CAGR) of 37.3%. The Chinese market is expected to grow even faster, with a CAGR of 41.7% during the same period [2] - Silicon carbide plays an irreplaceable role in the AI sector due to its superior physical properties, especially as demand for AI computing power surges [2] Company Positioning - Tianyu Semiconductor ranks first in both revenue and sales in the Chinese silicon carbide epitaxial wafer market, with market shares of 30.6% and 32.5%, respectively. Globally, it holds 6.7% and 7.8% market shares, placing it among the top three [2] - The company has gained recognition from leading international clients such as Infineon and ON Semiconductor, successfully integrating its products into the supply chains of top global integrated device manufacturers [2] Valuation Analysis - Tianyu Semiconductor's expected market capitalization upon issuance is approximately HKD 22 billion. Compared to peers, this valuation appears significantly attractive, especially when considering the high valuations of other companies in the sector [3] - For instance, the market capitalization of GaN concept company Innoscience is around HKD 62.9 billion, while Tianyu's estimated valuation is lower despite its leading position in the market [3] - The valuation of Tianyu Semiconductor is also favorable when compared to pre-IPO valuations of similar companies, indicating a clear discount [3] Investment Mechanism and Support - Tianyu Semiconductor employs a public offering strategy with a 10% B mechanism, which historically provides unique support for company performance post-listing in the Hong Kong market [4] - The company has implemented a 15% green shoe mechanism to stabilize stock prices, allowing underwriters to buy shares if the stock price falls below the offering price, thus providing an additional safety margin for investors [4] - The company's production capacity utilization is expected to approach 60% by May 30, 2025, reflecting a tight supply-demand balance, with IPO proceeds primarily allocated for capacity expansion [4] Strategic Outlook - Driven by national strategies for semiconductor self-sufficiency and a global energy revolution, Tianyu Semiconductor is poised for a value reassessment post-listing, representing a historic investment opportunity in China's third-generation semiconductor industry [5]