Huatai Securities: In 2024, the mismatch between supply and demand in the diamond segment will put pressure on profits, and technological iteration will drive a restructuring of the industry landscape.

Huatai Securities stated that as a consumable material for cutting photovoltaic silicon wafers, diamond wire is driven by the trend of silicon wafer thinning, and the diameter of the wire continues to decrease. 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 terms of economy and its penetration rate is rapidly increasing. It is expected that the global penetration rate will reach 98% by 2028, with a corresponding CAGR of 41% in global tungsten wire demand from 2025 to 2028. In 2024, the mismatch between supply and demand in the diamond wire segment will put pressure on profits, and technological iteration will drive the restructuring of the industry landscape. The manufacturing process for tungsten wire is complex, with high technological barriers. Mastering the mass production process of tungsten wire can help reduce raw material costs, strengthen technological advantages, and potentially increase industry concentration.