"The 'Chinese Choice' for Global SiC Core Customers: Why TIANYU SEMI (02658)?"

An announcement on the evening of February 6 revealed that the leader in the field of SiC epitaxial wafers in China, TIANYU SEMI (02658), has ushered in a long-awaited "volume time". According to the announcement disclosed by TIANYU SEMI, the company has signed a strategic cooperation agreement in the field of silicon carbide (SiC) epitaxial wafers with South Korea's EYEQ Lab Inc. This marks TIANYU SEMI's transition from being a domestic excellent enterprise mainly serving the domestic market to a key player deeply embedded in the global high-end supply chain that has gained international industry recognition. Under the agreement, the two parties will establish a long-term partnership, focusing on the supply and application of silicon carbide (SiC) epitaxial wafers. The announcement shows that TIANYU SEMI will provide EYEQ Lab with high-quality SiC epitaxial wafers covering specifications from 6 to 8 inches, and voltages ranging from 650V to 20,000V, suitable for both unipolar and bipolar power electronic devices, fully meeting EYEQ Lab's product development and mass production needs in various application scenarios. EYEQ Lab will prioritize the purchase of SiC epitaxial wafers provided by TIANYU SEMI under the same conditions, for a period of three years. In view, the impact of this international cooperation is comprehensive and strategically deep, as it not only opens immediate business opportunities for TIANYU SEMI, but also injects strong long-term drive into its technology path, market space, industrial chain discourse power, and capital market narrative in multiple dimensions. South Korea is a major hub for the global semiconductor industry, with strong demand for SiC power devices. EYEQ Lab is one of the leading third-generation semiconductor SiC power semiconductor professional enterprises, focusing on the design, development, manufacturing, and application solutions of SiC power devices and power modules. The announcement shows that EYEQ Lab has a complete technical capability from device design, process development, wafer manufacturing to packaging and testing, with multiple core technologies and mass production experience in the field of high-voltage, high-frequency, and high-efficiency SiC power semiconductors, making it a high-quality enterprise in the device end of the SiC industry chain. According to public information, EYEQ Lab has also received investment from Samsung subsidiary Patron+ in the amount of 2.5 billion Korean won, indicating that its technical strength, production capacity, and development potential have been recognized by global semiconductor giants. As a leader in the SiC epitaxial wafer field in China, TIANYU SEMI focuses on the production and sales of full-specification 4/6/8-inch SiC epitaxial wafers, covering core downstream sectors such as new energy vehicles, photovoltaics, and rail transportation, with added value services such as epitaxial subcontracting, cleaning, testing, etc., making it a core supplier in the material end of the SiC industry chain. From the perspective of mutual empowerment, the cooperation between the two parties will achieve complementary advantages, as TIANYU SEMI's SiC epitaxial wafer production capability and capacity will be deeply integrated with EYEQ Lab's professional capability in power device design and manufacturing, forming a two-way win-win situation of "material end capacity increment + device end supply stability," establishing a stable supply and demand cooperation system and laying the foundation for subsequent technological cooperation and joint research and development. At a deeper level, the strategic cooperation between TIANYU SEMI and EYEQ Lab endows the company with a crucial "international passport," directly verifying its technical strength: the silicon carbide industry has extremely high technological barriers and certification thresholds, and downstream device customers, especially those in strict application areas such as automotive and industrial sectors, are very cautious in choosing their material suppliers. This collaboration demonstrates the company's product supply capability, fully proving that its product technology, performance, quality, etc., have reached the mass production standards of leading international device companies. In fact, as one of the few domestic enterprises that have achieved mass production of 8-inch silicon carbide epitaxial wafers, TIANYU SEMI's 8-inch products have accelerated to become the company's new growth engine. In December 2025, the company achieved full production line operation in the Songshan Lake Ecological Park in Dongguan, forming a more efficient and flexible production capacity layout covering 6 to 8-inch silicon carbide epitaxial wafers. In the next two years, the new base in the ecological park will focus on deploying 8-inch production lines, providing higher performance and consistency product support to high-end global customers. The three-year preferential procurement agreement with EYEQ Lab, with the option to renew, has provided TIANYU SEMI with long-term stable order guarantees, resolving the core issue in the SiC epitaxial wafer industry of "easy capacity expansion, difficult digestion," especially ensuring the utilization rate of high-margin 8-inch epitaxial wafers. The landing of this overseas order also provides an early layout opportunity for the high-end production capacity of the new base, allowing TIANYU SEMI to achieve a positive cycle of "capacity expansion - order fulfillment - profit improvement." Meanwhile, EYEQ Lab's mass production grade recognition of TIANYU SEMI's 8-inch high-end epitaxial wafer supply capability fills the gap in international mass production verification for domestic high-end products, potentially becoming an important milestone for the internationalization of domestic SiC materials, aligning with the core development trends of high-end and globalization in the industry. From an industry perspective, this strategic move is also highly aligned with national strategies. Silicon carbide materials are widely used in areas such as new energy vehicles, photovoltaic power generation, and rail transportation, serving as important foundational materials for developing new quality productivity. Guangdong Province's "14th Five-Year Plan" explicitly states the need to focus on the development of third-generation semiconductors such as silicon carbide. The capacity expansion of TIANYU SEMI will effectively alleviate the global market's pressure on raw material supply and help China achieve independent and controllable key materials in critical areas, providing solid support for the high-quality development of strategic emerging industries. In conclusion, this cooperation provides a valuable opportunity for TIANYU SEMI to further expand its international market. It not only brings rapid growth to its overseas business but also achieves a double breakthrough in technology and market by leveraging endorsements from international high-quality customers, enabling it to transition from "domestic leader" to "international core player" in the global market competition, thus seizing a leading advantage in the reshaping and upgrading of the global semiconductor industry supply and demand in 2026. From a capital market perspective, this cooperation will directly catalyze TIANYU SEMI's stock performance in the short term and improve sentiment in the third-generation semiconductor sector. On the day of the announcement, the company's stock price showed strong performance, rising throughout the morning session and maintaining high-level fluctuations in the afternoon, with the stock closing at 48.9 Hong Kong dollars, a reversal gain of 4.09%, providing direct positive feedback from the capital market. In the long term, this cooperation will show the market the potential for TIANYU SEMI to increase its share in the global silicon carbide supply chain, with its valuation logic expected to shift from simply benchmarking China's semiconductor policy dividends to benchmarking the growth space of the global silicon carbide market and the scarcity value as an international supplier. This upgrade in narrative logic will attract more long-term funds focused on global technology industrial chains, enhancing the company's recognition and liquidity in the Hong Kong stock technology sector. In the future, TIANYU SEMI will firmly grasp this strategic opportunity, transforming it into continuous technological breakthroughs, solid customer relationships, and robust financial returns, leaving its mark in the broad and revolutionary global semiconductor materials industry.