Huawei and BYD Invest, Another Semiconductor Material Leader Goes Public!

On December 5th, Guangdong Tianyu Semiconductor Co., Ltd. (hereinafter referred to as Tianyu Semiconductor) successfully listed on the main board of the Hong Kong Stock Exchange.Become the "first stock of silicon carbide epitaxial wafers"!

Tianyu Semiconductor's offering price is HKD 58, issuing 30.07 million shares, with a total fundraising amount of HKD 1.744 billion; after deducting non-listing expenses of HKD 71 million, the net fundraising amount is HKD 1.673 billion.

According to the information, Tianyu Semiconductor was founded in 2009.It is the earliest enterprise in China to achieve industrialization of third-generation semiconductor silicon carbide epitaxial wafers and the first domestic company to obtain automotive quality certification (IATF 16949) for silicon carbide semiconductor materials. It is also one of the companies in China with the largest production capacity for 6-inch and 8-inch epitaxial wafers.

Currently, Tanyue Semiconductor ranks first in both revenue and sales in the silicon carbide epitaxial wafer market in China and is among the top three globally. The company's technical expertise has been recognized by international top-tier clients such as Infineon and ON Semiconductor, and its products have successfully entered the supply chain systems of globally leading integrated device manufacturers.

The lineup of shareholders behind Skyverse Semiconductor is also extremely impressive, with leading companies such as Huawei and BYD prominently listed, along with major state-owned assets from Shanghai and Guangdong, as well as heavyweight funds like the China-Belgium Fund.

Regarding the revenue situation, the prospectus shows that Tianyu Semiconductor's revenues for 2022-2024 were 437 million yuan, 1.171 billion yuan, and 520 million yuan respectively; the gross profits were 87.486 million yuan, 217 million yuan, and negative 374 million yuan; the gross profit margins were 20%, 18.5%, and negative 72%. In the first five months of 2025, the company achieved revenues of 257 million yuan, a year-on-year decrease of 13.6%.

In terms of sales volume, the company's total sales of epitaxial wafers reached 162,826 pieces (including OEM) in the first three quarters of 2025, representing a growth of 180% compared to the same period in 2024. Among the specific products, the performance of 6-inch and 8-inch epitaxial wafers was particularly outstanding, with sales in the first three quarters of 2025 increasing by 90% and 972% respectively compared to the whole year of 2024, showing a strong growth trend.

However, behind the growth in sales is the cost of "exchanging price for volume." In the first five months of 2025, the price of its main product, 6-inch epitaxial wafers, dropped from 9,631 yuan per piece in 2022 to 3,138 yuan per piece, a decline of 67.4% compared to the peak in 2023. To capture market share, the price of 8-inch products fell from 34,467 yuan per piece in 2023 to 8,377 yuan per piece, not only significantly decreasing from the peak but also falling below the industry forecast of the average price for 8-inch epitaxial wafers in 2025 (approximately 10,000 to 12,000 yuan per piece).

Silicon carbide epitaxial wafers, as a key fundamental material for power semiconductor devices, are widely used in downstream fields such as electric vehicles, power supply, and rail transportation. China, as the world's largest new energy vehicle market, provides significant market opportunities for the silicon carbide industry. As of May 30, 2025, the production capacity utilization rate of Sky Semiconductor is close to 60%, showing a significant improvement compared to 2024, directly reflecting the current tight supply and demand situation.