TY Semiconductor (02658) saw its shares rise by nearly 8% during the trading session. At the time of writing, the stock was up 5.99%, trading at HK$52.4 with a turnover of HK$12.6884 million.

The increase follows the company's recent announcement of a formal strategic cooperation agreement with EYEQ Lab Inc., a leading South Korean third-generation semiconductor firm. Under the agreement, TY Semiconductor will supply EYEQ Lab with a full range of high-quality silicon carbide (SiC) epitaxial wafers. The products will cover specifications from 6-inch to 8-inch wafers, with voltage ratings ranging from 650V to 20,000V. These wafers are compatible with various unipolar and bipolar power electronic devices, meeting EYEQ Lab's requirements for both R&D and mass production across different applications.

In return, EYEQ Lab will give procurement priority to TY Semiconductor’s SiC epitaxial wafers under equivalent terms and conditions, reinforcing the foundation of their collaboration.

Public information indicates that silicon carbide, as a third-generation semiconductor material, is known for its high-temperature resistance, high voltage tolerance, and high-frequency characteristics. It is widely used in areas such as new energy vehicles, power supply systems, and rail transportation, serving as a core raw material for power semiconductor devices.

According to data from Frost & Sullivan, in the global self-produced SiC epitaxial wafer market in 2024, TY Semiconductor ranked third in China with a 6.7% revenue share and a 7.8% sales volume share globally. In the Chinese market, the company held a 30.6% revenue share and a 32.5% sales volume share, making it the largest domestic manufacturer of self-produced SiC epitaxial wafers.