Core Insights - The article emphasizes the strategic importance of SiC (Silicon Carbide) as a potential interposer material for advanced packaging solutions by Nvidia and TSMC, with a planned introduction by 2027, indicating a shift towards addressing thermal management challenges in AI computing [3][4]. - The competition in AI computing is shifting focus from transistor density to packaging and thermal management capabilities, highlighting the critical role of heat dissipation in chip performance [3][4]. - SiC is positioned as the optimal solution for CoWoS (Chip on Wafer on Substrate) interposers, balancing performance and feasibility, while traditional materials like diamond and glass fall short in practicality [3][4]. - The adoption of SiC in CoWoS could create a significant new market, particularly benefiting the mainland Chinese SiC industry due to aggressive investments in substrate capacity and cost advantages [3][4]. Group 1: SiC as Interposer Material - Nvidia and TSMC are considering SiC for future advanced packaging, with plans to implement it by 2027 [4]. - SiC is expected to address the thermal management issues associated with CoWoS packaging, which is crucial for the performance of AI chips [3][4]. - The transition to SiC interposers is seen as a strategic move to maintain competitive advantages in the semiconductor industry [3][4]. Group 2: Thermal Management Challenges - The article highlights the increasing power requirements of Nvidia's GPUs, necessitating improved cooling solutions to manage heat dissipation effectively [23][25]. - The CoWoS packaging technology is critical for high-performance computing, and any limitations in thermal management could hinder chip performance and reliability [25][37]. - SiC's high thermal conductivity (490 W/m·K) significantly outperforms silicon (130 W/m·K) and glass, making it a superior choice for managing heat in advanced packaging [105][106]. Group 3: Market Implications - The potential shift to SiC interposers could unlock a substantial new market, moving SiC from a niche power electronics market to a broader AI and data center infrastructure market [15][111]. - The mainland Chinese SiC industry is poised to benefit from this transition, leveraging its investments and production capabilities to capture a share of the global semiconductor supply chain [3][4][113]. - The expected growth in CoWoS capacity, projected at a compound annual growth rate of 35%, underscores the increasing demand for advanced packaging solutions [112].

Core Viewpoint - Tianyue Advanced is set to go public in Hong Kong, aiming to raise approximately $250 to $300 million, showcasing strong growth in the silicon carbide (SiC) substrate market with a projected revenue increase of 41% in 2024 [1][2]. Company Summary - Tianyue Advanced has successfully passed the listing hearing on July 30 and is currently conducting an IPO pre-roadshow [1]. - The company is recognized as a leader in the third-generation semiconductor SiC substrate sector, leveraging technological innovation to accelerate growth [1]. - In 2024, Tianyue Advanced's revenue from substrates is expected to grow significantly, contrasting with many international peers experiencing slowdowns [1][2]. Industry Summary - The global power SiC device market is projected to reach $10.3 billion by 2030, with a compound annual growth rate (CAGR) of 20.3% from 2024 to 2030 [2]. - The shipment volume of 6-inch substrates is forecasted to increase from approximately 1.15 million pieces in 2024 to nearly 4.7 million pieces by 2030, reflecting a CAGR of 26% [2]. - Despite short-term fluctuations in the electric vehicle market, the long-term growth trend for SiC substrates remains intact, driven by demand from sectors like renewable energy storage, AI data centers, and electric vehicles [2]. Competitive Position - Yole identifies Tianyue Advanced as a representative enterprise in the upstream wafer materials sector within China's expanding SiC ecosystem [4]. - The company is expected to benefit from China's position as the largest electric vehicle market and the "China for China" strategy, enhancing its market presence [4]. - In 2024, while competitors like Wolfspeed and Coherent faced revenue declines, Tianyue Advanced's revenue in the N-type SiC substrate sector grew by 35% [4]. Strategic Partnerships - Tianyue Advanced has established significant supply agreements with leading international manufacturers such as Infineon, Bosch, and Onsemi, integrating into the global core supply chain [5]. - The company is recognized as a leader capable of delivering large volumes of 8-inch wafers to the open market, aligning with the industry's shift towards larger substrate sizes [5]. Future Outlook - The ongoing trend towards larger SiC substrates is expected to facilitate applications in emerging consumer electronics, such as AI glasses, which are projected to see substantial market growth [6]. - The anticipated explosion in the AI glasses market could provide Tianyue Advanced with a second growth curve, with expected shipments exceeding 65.9 million units by 2030 [6]. - With a solid fundamental outlook and promising growth expectations, Tianyue Advanced is positioned as a compelling investment opportunity in the upcoming Hong Kong IPO market [6].