TIANYU SEMI (02658) saw its shares rise more than 5% during early trading. At the time of writing, the stock was up 4.34%, trading at HKD 49.5, with a turnover of HKD 2.3657 million. The positive movement is linked to the surge in computing power demand driven by AI Agent applications, which is subsequently increasing the power requirements for AI infrastructure like data centers. NVIDIA has introduced a new 800 VDC architecture power system, specifically designed for future megawatt-scale computing infrastructures requiring high-efficiency power delivery. This system offers significant advantages in efficiency, thermal loss reduction, and reliability, and considers the adoption of new semiconductor materials such as Gallium Nitride (GaN) and Silicon Carbide (SiC) to handle higher voltages and frequencies. A research report from CLSA stated that TIANYU SEMI is benefiting from the increased adoption of Silicon Carbide (SiC) epitaxial wafers in high-power and high-voltage application scenarios. The report forecasts that the global SiC epitaxial wafer power semiconductor market will achieve a compound annual growth rate (CAGR) of 40.5% from 2025 to 2029, with a total addressable market (TAM) estimated to reach USD 16 billion. The institution highlighted that SiC epitaxial wafers represent one of the upstream segments with the most value-add potential. TIANYU SEMI is the largest supplier of SiC epitaxial wafers in the Chinese market for 2024 and is also one of the first domestic companies capable of mass-producing 8-inch SiC epitaxial wafers, positioning it to be a primary beneficiary of this market trend.
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