In-Depth Report on Tianyue Advanced: Investment Logic of SiC as a Core Material for CoWoS

The recent 20% daily limit up of Tianyue Advanced is strongly supported by fundamentals, with the core logic lying in the structural opportunities brought by technological breakthroughs of silicon carbide (SiC) materials in advanced packaging (CoWoS). NVIDIA plans to replace silicon with SiC as the interposer material in its next-generation Rubin GPU in 2027, and TSMC has joined forces with equipment manufacturers to accelerate R&D. This industry trend opens up a new growth track for SiC substrate companies [1][2]. However, the company’s current static valuation is as high as 1425x P/E, and its stock price has already priced in some expectations. It is recommended that investors closely monitor the progress of technology introduction and order implementation.

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Tianyue Advanced (Stock Codes: 688234.SS/02631.HK) is a

, and one of the few companies worldwide capable of providing samples of 12-inch SiC substrates. Its main products include conductive SiC substrates and semi-insulating SiC substrates, which are widely used in new energy vehicles, photovoltaic power generation, 5G communications, RF devices, and other fields [0].

In terms of industry position, Tianyue Advanced holds a significant share in the global SiC substrate market. In recent years, it has continuously increased R&D investment and maintained a leading edge in large-size substrate preparation technology. Its customer base covers mainstream domestic and international power semiconductor manufacturers and chip manufacturing enterprises, laying a customer foundation for its layout in the AI chip packaging field.

As can be clearly seen from the candlestick chart, Tianyue Advanced has shown a strong upward trend recently:

Time Period	Price Change	Remarks
5-Day	+19.79%	Short-term Surge
20-Day	+27.06%	Trend-Based Upturn
1-Month	+32.10%	Accelerated Rise
3-Month	+52.35%	Mid-term Strong Performance
6-Month	+89.88%	Trend-Driven Bull Market
1-Year	+102.18%	Price Doubled

As of January 20, 2026, the company’s stock price closed at

, with a market capitalization of (approximately RMB 470 billion), and its cumulative increase since 2025 has exceeded 100% [0].

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CoWoS (Chip on Wafer on Substrate) is an advanced 2.5D packaging technology led by TSMC. It achieves high-density interconnection of multiple chips by adding an interposer between the chip and the substrate. As the performance requirements of AI computing power chips continue to increase, CoWoS packaging faces two core challenges [2][3]:

• NVIDIA Blackwell Ultra B300 GPU has a power consumption of
  1400W
• The power consumption of the next-generation Rubin Ultra is expected to further increase
• The thermal conductivity of traditional silicon interposers (approximately 150W/m·K) can no longer meet heat dissipation requirements

• In 2024, the silicon interposer area was approximately 50×50mm² (3x reticle)
• It is expected to expand to 81×81mm² (8x reticle) in 2027
• The area will nearly triple, putting forward higher requirements for material performance

Compared with traditional silicon materials, silicon carbide (SiC) has significant performance advantages, making it an ideal alternative material for CoWoS interposers [1][2][3]:

Performance Indicator	Silicon (Si)	Silicon Carbide (SiC)	Advantage Multiplier
Thermal Conductivity	150 W/m·K	490 W/m·K	2-3x
Band Gap	1.1 eV	3.2 eV	3x
Breakdown Electric Field	0.3 MV/cm	2.8 MV/cm	9x
Via Aspect Ratio	<17:1	109:1	Over 6x

1. Excellent Heat Dissipation Capacity
   : SiC’s thermal conductivity is 2-3 times that of silicon, which can effectively solve the high-power heat dissipation problem of AI chips. It is also expected to reduce the size of heat sinks and lower overall packaging costs [3].

2. Higher Via Aspect Ratio
   : A team from Brigham Young University in the United States has successfully fabricated vias with an aspect ratio of up to 109:1 on 350μm-thick 4H-SiC, while the via aspect ratio of conventional silicon interposers is less than 17:1 [3]. This means:
   • Enabling denser interconnection layouts
   • Reducing interconnection length and improving chip performance
   • Reducing packaging volume, making 2.5D packaging performance close to that of 3D packaging

3. Good Chemical Resistance
   : SiC can be used to fabricate high-aspect-ratio vias through wet etching, with better process compatibility than other materials.

• According to a September 2025 report from Taiwanese media, NVIDIA plans to replace silicon with SiC as the interposer material in the CoWoS packaging of its next-generation Rubin processor [1][2]
• Mass production will be officially introduced by
  2027
  at the latest
• The first-generation Rubin GPU will still use silicon interposers, but subsequent versions will fully switch to SiC

• Has joined forces with equipment manufacturers such as Japan’s DISCO to develop SiC interposer manufacturing technology [2][3]
• Announced at the 2024 European Open Innovation Platform (OIP) Forum:
  • Launch 5.5x reticle CoWoS packaging (10,000 mm²) in 2025-2026
  • Launch 7x reticle CoWoS packaging (14,400 mm²) in 2027
• Its Q4 2025 financial report exceeded expectations, and its 2026 capital expenditure guidance was significantly raised to
  USD 52-56 billion
  , a record high [1]

According to a research report from Huaxi Securities, if CoWoS adopts SiC to replace silicon interposers, market demand will experience explosive growth [1][2]:

• CoWoS packaging will maintain a 35% compound annual growth rate after 2028
• The replacement rate of SiC materials will eventually reach 70%
• Calculated based on 5-21 interposers produced per 12-inch wafer

• 2024: Approximately 21,700 12-inch SiC substrates per year
• 2026: Approximately 268,800 12-inch SiC substrates per year
• 2030:
  Over 2.3 million 12-inch SiC substrates per year
  • Equivalent to approximately
    9.2 million 6-inch substrates
    , far exceeding current global capacity supply

• Global SiC substrate capacity was limited in 2024
• Demand in 2030 will be more than
  10 times the current level
• The huge market supply-demand gap brings significant growth opportunities for domestic enterprises

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Indicator	Value	Evaluation
Price-to-Earnings Ratio (P/E)	1425.23x	Extremely high, reflecting high growth expectations
Price-to-Book Ratio (P/B)	7.15x	Moderate
Price-to-Sales Ratio (P/S)	29.45x	Relatively high
Return on Equity (ROE)	0.64%	Relatively low
Net Profit Margin	2.32%	Relatively low
Current Ratio	3.53	Excellent
Quick Ratio	2.81	Excellent
Debt Risk	Low	Financially sound [0]

From the results of financial analysis, Tianyue Advanced’s current profitability is weak, with the following characteristics [0]:

1. Conservative Accounting Policy
   : The company adopts conservative accounting treatment, and its high depreciation/capital expenditure ratio may mean that there is room for performance improvement in the future

2. Negative Free Cash Flow
   : The free cash flow in the latest fiscal year was -RMB 502 million, reflecting that the company is still in the period of capacity expansion and R&D investment

3. Revenue Under Pressure
   : Q3 2025 revenue was USD 318 million, lower than the market expectation of USD 395 million, a decrease of 19.41%

• The company is in a strategic opportunity period for domestic substitution of semiconductor materials
• Current losses/low profits are the result of strategic investments
• In the future, with the surge in demand for AI chips, there is huge room for profit improvement

1. Track Scarcity
   : There are only about a dozen companies worldwide capable of providing 12-inch SiC substrates, and Tianyue Advanced has a first-mover advantage
2. High Growth Expectations
   : The incremental demand brought by AI chip packaging is several times the size of the traditional market
3. Domestic Substitution Dividend
   : China’s SiC industry chain has three advantages in investment scale, production cost, and downstream support
4. Institutional Optimism
   : Multiple securities firms have given a “Buy” rating, and Huaxi Securities has listed it as a beneficiary target of SiC substrates

• Current valuation has fully priced in some optimistic expectations
• Performance realization takes time, and there is uncertainty in technology introduction
• Need to be alert to valuation corrections caused by unmet expectations

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Analysis Dimension	Conclusion
Trend Type	Upward Trend
Trend Status	To be confirmed (observed after breakthrough)
Buy Signal Date	January 16, 2026
Support Level	RMB 98.05
Resistance Level	RMB 114.94
Next Target Level	RMB 121.01
Trend Score	7.5/10 [0]

Indicator	Value	Signal
MACD	No Death Cross	Bullish Bias
KDJ	K:76.9, D:70.9, J:88.9	Buy Signal
RSI (14)	Overbought Zone	Risk Warning
Beta	0.07	Extremely Low Correlation with Market

1. RSI is in the overbought zone
   : There is a risk of short-term correction
2. High Volatility
   : The daily volatility standard deviation is 4.92%, making it a high-volatility stock
3. Need to Confirm Breakdown Validity
   : A buy signal was issued on January 16, but subsequent candlestick charts are required for confirmation

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Evaluation Dimension	Score	Description
Logical Rationality	★★★★★	The industry trend of SiC replacing silicon interposers is clear
Market Size	★★★★★	The incremental market is more than 10 times the current size
Company Competitiveness	★★★★☆	One of the few companies worldwide with mass production capacity of 12-inch SiC
Valuation Rationality	★★☆☆☆	Extremely high static valuation
Short-Term Risk	★★★☆☆	In the overbought zone

Be Cautious About Chasing Highs

• The stock price has risen sharply in the short term (up 27% in the past 20 days)
• RSI is in the overbought zone
• It is recommended to wait for a correction to the support level (around RMB 98) before positioning

Accumulate on Dips

• Monitor the progress of NVIDIA’s Rubin GPU and TSMC’s CoWoS capacity expansion
• Track the technology introduction schedule of SiC interposers
• Gradually build positions on corrections

Strategically Optimistic

• The market space for SiC in AI chip packaging is huge
• The company has first-mover advantages and technological barriers
• Driven by two wheels: domestic substitution and AI computing power demand

Risk Type	Specific Content	Risk Level
Technological Risk	The progress of SiC interposer technology falls short of expectations, leading to delayed introduction	High
Competitive Risk	Domestic and international competitors accelerate R&D of 12-inch SiC, eroding market share	Medium
Geopolitical Risk	Sino-US technological frictions may affect chip supply chain cooperation	Medium
Valuation Risk	Current valuation has fully priced in optimistic expectations; a significant correction will occur if performance falls short of expectations	High
Market Risk	Slowdown in the growth rate of AI chip demand affects CoWoS capacity expansion progress	Medium

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The investment logic behind Tianyue Advanced’s 20% daily limit up is

, with the core logic as follows:

1. Clear Industry Trend
   : NVIDIA plans to adopt SiC interposers in its Rubin GPU in 2027, and TSMC has joined forces with equipment manufacturers for R&D, with a clear technical roadmap [1][2][3]
2. Huge Market Space
   : According to Huaxi Securities’ estimates, more than 2.3 million 12-inch SiC substrates will be needed in 2030, which is more than 10 times the current market size [1]
3. Company Competitiveness
   : Tianyue Advanced is one of the few companies worldwide capable of providing 12-inch SiC substrates, and some of its customers have entered NVIDIA’s supply chain [1]
4. Catalyst Approaching
   : TSMC’s Q4 2025 performance exceeded expectations, its 2026 capital expenditure was significantly raised to USD 56 billion, and CoWoS capacity expansion is accelerating [1]

• The current valuation is extremely high (1425x P/E), and the stock price has already priced in some expectations
• SiC interposer technology has not yet reached mass production, and there is uncertainty in order implementation
• RSI is in the overbought zone in the short term; it is recommended to wait for a correction before selecting an opportunity to position

: The logic of SiC being the next-generation core material for TSMC’s CoWoS has strong industrial support, but investors need to monitor the progress of technology introduction and order implementation to avoid chasing highs at a high valuation level. In the long term, Tianyue Advanced is expected to become an important beneficiary of the AI computing power chip industry chain.

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[1] Sina Finance - “TY Advanced Rises Over 16% in the Morning; the Company Actively Expands Applications of Silicon Carbide in Emerging Fields” (https://finance.sina.com.cn/stock/hkstock/marketalerts/2026-01-16/doc-inhhnkez5660595.shtml)

[2] Zhitong Finance - “Hong Kong Stock Market Volatility | Tianyue Advanced (02631) Rises Over 17%; TSMC’s Performance Exceeds Expectations with Positive Guidance” (https://cn.investing.com/news/stock-market-news/article-3168656)

[3] EET China - “NVIDIA Adopts 12-inch SiC? A New Track is Added” (https://www.eet-china.com/mp/a435577.html)

[4] Huaxi Securities - “In-Depth Report on SiC in the Semiconductor Industry (1): Advanced Packaging, the Future Material Choice of NVIDIA and TSMC” (http://www.sdyanbao.com/detail/933023)

[0] Jinling AI Financial Database (Company Overview, Financial Data, Technical Analysis, Market Data)