TDG(SH:600330)2026-02-27 02:20Summary of TianTong Co., Ltd. Conference Call Industry Overview - TianTong Co., Ltd. operates in the new materials sector, focusing on three key materials: 1. Soft magnetic materials, which have been in development since 1984 and show stable growth 2. Sapphire, which started development in 2010 and is expected to reach a low point in 2024, currently nearing breakeven 3. Lithium Niobate/Tantalate, which began development in 2016, driven by applications related to artificial intelligence, including optical modules, optical engines, and AI glasses waveguides [1][1][1] Key Insights and Arguments - Lithium Niobate has two application directions in data centers: 1. Optical engines for "optical in, copper out" within cabinets 2. 3.2T optical modules - At a 1.6T rate, silicon photonics remains mainstream but faces high costs and limited capacity issues - As the industry transitions to the 3.2T era, Lithium Niobate's advantages in loss and heat will become more pronounced, making it a key choice for modulators in Co-Packaged Optics (CPO) [1][1][1] Competitive Advantages - The company has achieved a full industry chain layout in the Lithium Niobate sector, covering key equipment, single crystal pulling, chip production, and thin-film Lithium Niobate - Globally, only two companies can supply thin-film Lithium Niobate wafers, with TianTong being the only supplier in mainland China - Only two companies can mass-produce 8-inch Lithium Niobate chips, with TianTong being one of them, providing strong advantages in cost, quality, and development capabilities [2][2][2] Technological Pathways - There are two main technological pathways for integrating thin-film Lithium Niobate with silicon photonics: 1. Wafer to Wafer: Direct integration of thin-film Lithium Niobate on silicon photonic chips 2. Dieto Wafer: Pre-manufacturing Lithium Niobate modulator chips and then bonding them to silicon photonic chips [3][3][3] Future Developments - The company currently supplies products from both pathways - If 12-inch thin-film Lithium Niobate is developed, the advantages of the Wafer to Wafer pathway will become more apparent - In AI glasses applications, Lithium Niobate is more advantageous than silicon carbide in terms of price, capacity, and compatibility with display modules, making it suitable for large-scale consumer electronics applications - 12-inch wafers are expected to achieve the highest efficiency in this field - Tantalate, as a "brother material" to Lithium Niobate, shows better performance in certain characteristics (e.g., temperature stability) but is still in the research and development phase for industrial applications - TianTong is the only manufacturer globally capable of mass-producing optical-grade 8-inch Tantalate [4][4][4]