on 24-Sep-2025 24 September 2025 Global Semis Global Semis: SiC for advanced packaging? Identifying the investment opportunities David Dai, CFA +852 2918 5704 david.dai@bernsteinsg.com Mark Li +852 2123 2645 mark.li@bernsteinsg.com Juho Hwang +852 2123 2632 juho.hwang@bernsteinsg.com Carmine Milano +44 207 762 1857 carmine.milano@bernsteinsg.com Edward Hou, CFA +852 2123 2623 edward.hou@bernsteinsg.com Yipin Cai, CFA +852 2123 2669 yipin.cai@bernsteinsg.com According to news reports, TSMC is considering usi ...

Core Viewpoint - The company Lichee Semiconductor reported a significant increase in net losses for Q2 2025, primarily due to the appreciation of the New Taiwan Dollar and foreign exchange losses, with a net loss of NT$33.3 billion and a loss per share of NT$0.8, compared to NT$0.26 in Q1 [1] Group 1 - In Q2, the company shipped approximately 400,000 wafers, a 9% increase from Q1, but the average selling price (ASP) declined by 2% to 3% due to a 5% appreciation of the New Taiwan Dollar, resulting in a revenue growth of only 1.5% in NT dollar terms [1] - The foreign exchange factors significantly impacted profitability, with a foreign exchange loss of NT$15.9 billion in Q2, leading to a net loss increase from NT$11 billion in Q1 to NT$33.3 billion in Q2 [1] Group 2 - The company plans to focus on five operational priorities, including a low visibility outlook for Q3 in the Greater China region, with weak demand for driver ICs and image sensors, while demand for power management ICs (PMICs) related to AI applications remains strong in Europe and the US [1] - Demand for DRAM foundry services has rebounded, driven by major manufacturers exiting the 8G DDR4 market, prompting customers to stock up, with wafer demand fully loaded and ASPs increasing monthly since last month [2] - The SLC Flash product line is seeing a recovery in demand as end customers reduce inventory, with 24nm SLC Flash now in mass production, and the company expects future shipping momentum as major manufacturers gradually exit the SLC market [2] Group 3 - The company is accelerating its 3D AI Foundry and Interposer layout, with small-scale shipments of Interposer starting in Q2, primarily focusing on CoWoS-S, and plans to expand capacity for Interposer production, which is expected to contribute to gross margins over the next two years [2] - The company is also progressing with DRAM four-layer WoW stacking in conjunction with advanced logic process chips, and is developing eight-layer WoW stacking technology with customers, which, along with Interposer, is expected to become a major profit source for the 3D AI Foundry [2] - The development of an 8-inch GaN application for AI servers on a 100V technology platform is nearing completion, with the first batch of customer samples being sent, and trial production expected to start in Q4 this year, following increased inquiries from US and Japanese customers regarding GaN foundry services [2]