The substrate has passed the Infineon vehicle level certification and entered the Mercedes Benz 800V high-voltage platform supply chain, with an initial order amount of 230 million yuan.

2、 Shanghai Lingang Base: Capacity Leap and Technological Leadership

The Shanghai Lingang Base will achieve mass production capacity of 300000 conductive substrates per year in the first half of 2024, two years ahead of the original plan, mainly supplying international customers such as Infineon and Bosch. We are currently advancing the second phase of capacity enhancement, with the goal of expanding the total production capacity to 600000 pieces per year, with a focus on large-scale production of 8-inch and 12 inch substrates. In November 2024, Tianyue Advanced released the world's first 12 inch silicon carbide substrate at the Munich Semiconductor Exhibition in Germany. The output of single wafer chips increased by 30% compared to 8 inches, marking the entry of the silicon carbide industry into the "12 inch era". In March 2025, the company launched a full range of 6-inch/8-inch/12 inch substrates at the SEMICON China exhibition in Shanghai. Among them, the 12 inch high-purity semi insulating substrate and P-type substrate were the world's first exhibitions, covering the entire chain of crystal growth, defect control, processing and detection.

3、 Industry Status and Market Impact

In 2024, Tianyue Advanced's global market share of conductive silicon carbide substrates will soar to 22.8%, firmly ranking in the international top tier, second only to Wolfspeed (22.5%). The market share of semi insulating substrates in the field of 5G base station RF devices has reached 18%, ranking among the top three in the world for four consecutive years. The proportion of overseas revenue has increased from 28% in 2023 to 40% in 2024, and the sales premium in the European market is 15% -20% higher than that in China. The main customers include Infineon, Bosch, and Anson. In emerging fields, 12 inch substrates have entered the AR glasses supply chain and are collaborating with companies such as Meta to develop diffractive optical waveguide technology. Mass production is expected to be achieved by 2025.

4、 Financial and Capacity Outlook

In 2024, Tianyue Advanced achieved a revenue of 1.768 billion yuan (+41.37%) and a net profit of 179 million yuan, achieving full year profitability for the first time. The revenue from silicon carbide materials accounted for 83.4%. In the first quarter of 2025, research and development expenses increased by 101.67% year-on-year, mainly used in emerging fields such as 12 inch substrates and AR glasses. In terms of production capacity planning, the Jinan 500 ton monocrystalline base is expected to be put into trial operation in June 2025, which can meet the expansion demand of 5000 growth furnaces. The 12 inch substrate is planned to achieve mass production by 2027, with a target cost of $800 per piece, which is 15% lower than Wolfspeed.

5、 Industry competition and policy support

With the bankruptcy restructuring of Wolfspeed and the reduction of international industry competition pressure, domestic companies such as Sanan Optoelectronics and Tianke Heda are accelerating the construction of 8-inch production lines, and price competition may emerge after 2025. In terms of policy and capital assistance, Tianyue Advanced has been certified as the "Manufacturing Single Champion" of Shandong Province and selected as a strategic emerging industry cluster for the national "14th Five Year Plan". The company plans to raise funds through H-share listing and allocate 60% of the funds to expand production in Shanghai Lingang Phase II, with the goal of building an annual 8-inch production capacity of 500000 pieces.

summarize

The advanced Jinan project of Tianyue and the expansion of Shanghai Lingang Base mark a comprehensive upgrade of China's silicon carbide substrate industry in terms of technological breakthroughs, production capacity scale, and international layout. With the commercialization of 12 inch substrates and the landing of emerging applications such as AR glasses, the company is expected to further consolidate its global leading position from 2025 to 2027. However, the risk of overcapacity in the industry and technological competition from international giants still need to be vigilant, and Tianyue Advanced needs to maintain its competitive advantage through technological iteration and cost control.