Investment Rating - The report maintains a "Buy" rating for several companies including NAURA, SICC, SUMCO, Shin-Etsu Chemical, Mitsubishi Electric, and Infineon [2]. Core Insights - The report highlights significant growth in local production and demand for silicon wafers and SiC substrates in China, with local coverage expected to increase from 41% to 54% for 12-inch silicon wafers and from 80% to 87% for 6-inch SiC substrates by 2027E [1][6]. - Pricing trends indicate a decline in average selling prices (ASP) for 8-inch silicon wafers at a CAGR of -10% from 2024 to 2026E, while 12-inch wafers are expected to decline at -6% CAGR during the same period. SiC substrate ASP is projected to decrease from US$443 in 2024 to US$384 in 2026E [1][6]. - Capacity expansion is notable, with 12-inch silicon wafer capacity expected to grow at a CAGR of 21% from 2024 to 2027E, significantly outpacing the 3% CAGR for 8-inch silicon wafers. SiC substrate capacity is also set to expand at 26% and 96% CAGR for 6-inch and 8-inch substrates, respectively [1][6]. - The report anticipates a consolidation in the industry, with the top three Chinese silicon wafer suppliers projected to cover 36% of domestic demand by 2027E, up from 26% in 2024 [1]. Summary by Sections China TAM - The total addressable market (TAM) for silicon wafers in China is projected to grow from US$1.999 billion in 2021 to US$4.511 billion by 2030E, with a notable increase in shipments from 36,962k units in 2021 to 103,570k units by 2030E [37]. - The SiC substrate market is expected to grow from US$197 million in 2021 to US$2.770 billion by 2030E, driven by rising EV penetration and SiC adoption rates [39]. - The GaN devices market is projected to expand from US$66 million in 2021 to US$1.611 billion by 2030E, supported by applications in EVs, data centers, and consumer electronics [42]. Supply and Demand Dynamics - Local suppliers' capacity expansion in silicon wafers is primarily driven by logic and memory clients, while SiC substrate capacity is expanding due to increased adoption in EVs and fast charging technologies [43]. - The report notes that local suppliers are expected to cover 75% of SiC substrate demand in China by 2025E, increasing to 84% by 2027E [6][39]. - The demand for SiC and GaN is anticipated to replace IGBT in high power and high frequency applications, with SiC penetration rates projected to reach 75% in EVs by 2030E [52]. Pricing Trends - The ASP for silicon wafers is expected to decline, with 8-inch wafers decreasing at a CAGR of -10% and 12-inch wafers at -6% from 2024 to 2026E [1][6]. - SiC substrate pricing is also expected to narrow, making SiC MOSFETs more competitive against silicon IGBTs [1]. Industry Consolidation - The report indicates a trend towards consolidation in the silicon wafer industry, with the top three suppliers expected to significantly increase their market share in China by 2027E [1].

Atomera (ATOM) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Mike Bishop - IRScott Bibaud - President, CEO & DirectorFrank Laurencio - CFO Conference Call Participants Richard Shannon - Senior Research Analyst Mike Bishop Hello, everyone, and welcome to Atomera's first quarter twenty twenty five update call. I'd like to remind everyone that this call and webinar are being recorded, and a replay will be available on Atomera's IR website for one year. I'm Mike Bishop with the company's i ...

Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2025 was $5.2 million or 17¢ per share, compared to a net loss of $4.8 million or 19¢ per share in Q1 2024 [21] - GAAP operating expenses in Q1 2025 were $5.5 million, an increase of $448,000 from $5 million in Q1 2024 [21] - Non-GAAP net loss in Q1 2025 was $4.4 million compared to a loss of $4 million in Q1 2024 [22] Business Line Data and Key Metrics Changes - The increase in operating expenses was attributed to a $397,000 rise in R&D expenses and a $277,000 increase in G&A expenses, partially offset by a $226,000 decline in sales and marketing expenses [22] - The company is actively working on multiple technology areas, including gate all around applications and memory technologies, with significant progress reported in customer engagements [10][14] Market Data and Key Metrics Changes - The EPI equipment market is expected to reach approximately $2.6 billion by 2027, with a CAGR of 10% to 15% in leading-edge nodes [10] - The market for gallium nitride (GaN) applications is forecasted to exceed $2 billion at the device level by the end of the decade, growing at about a 40% CAGR [17] Company Strategy and Development Direction - The company has announced a partnership with a major capital equipment provider to enhance its technology offerings and accelerate customer engagements [4][9] - The focus on advanced node customers and the collaboration with the equipment provider aims to optimize production processes and improve customer solutions [5][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to deliver solutions for challenging electronic devices, emphasizing the importance of technology licensing within the semiconductor industry [20] - The company is actively recruiting to expand its engineering and sales teams to support growth and high-volume production [20] Other Important Information - The company raised $2.4 million under its ATM facility by selling approximately 163,000 shares at an average price of $15.19, maintaining a comfortable cash position [23] - Non-GAAP operating expenses for 2025 are expected to be in the range of $17.25 million to $17.75 million [25] Q&A Session Summary Question: Details on the partnership with the capital equipment company - The partnership involves extensive collaboration on technology development and production, with the partner providing significant resources and capabilities [32] Question: Focus of the partnership - The work is primarily focused on gate all around technologies, applicable to both logic and memory sectors [33] Question: Updates on STMicro collaboration - The company is engaged in discussions with multiple groups within STMicro, indicating strong credibility and interest in various technology areas [36][38] Question: Progress with RF SOI customers - There is increased interest in improving low noise amplifiers (LNAs) due to changing specifications from mobile phone manufacturers [43] Question: Status of transformative customers - Discussions with transformative customers are ongoing, with positive momentum and interest in expanding collaboration [49] Question: Financial outlook and operating expenses - Non-GAAP operating expenses for 2025 are projected to be around $17.25 million to $17.75 million, with a gradual ramp-up expected [54]