Huatai Securities: Tungsten filament penetration speeds up, main line high barriers drive pattern optimization.

Huatai Securities stated that diamond wire, as a consumable for cutting photovoltaic silicon wafers, is driven by the trend of thinning silicon wafers, resulting in a continuous reduction in wire diameter. The diameter of traditional carbon steel wire is approaching the industrial limit, while tungsten wire, with its advantages of high strength and low breakage rate, is gradually improving in economic efficiency and rapidly increasing its penetration rate. It is expected that the global penetration rate will reach 98% by 2028, and the global demand for tungsten wire is expected to grow at a CAGR of 41% from 2025 to 2028. In 2024, a mismatch in supply and demand in the diamond wire segment will put pressure on profits, driving industry restructuring through technological iteration. The production process of tungsten wire is complex, and there are high technical barriers, mastering the production process of tungsten wire will help reduce raw material costs and strengthen technological advantages, leading to a continuous increase in industry concentration.