Tony Electronics' silicon carbide substrate production capacity is climbing, but faces uncertainty

Dongni Electronics originally focused on the research, development, production and sales of ultra-fine alloy wires and other metal-based composite materials. Since 2017, the company has begun to invest resources in the research and development of silicon carbide substrates, and has signed an industry-university-research cooperation agreement with Nanjing University of Aeronautics and Astronautics, and has hired a doctor from the Institute of Physics, Academia Sinica, Taiwan, to lead the project. Regarding production capacity, Dongni Electronics has disclosed less information. The company previously expected to deliver 300,000 silicon carbide substrates in 2024 and 500,000 in 2025. According to the order contract, the company should produce at least 135,000 silicon carbide substrates from May to December 2023. However, according to the data in the semi-annual report, there is uncertainty in the ramp-up of production capacity, and the expected output may not be achieved. Therefore, it is estimated that Dongni Electronics' annual production capacity in 2023 may be less than 100,000 pieces. This situation shows that although Dongni Electronics has certain research and development and production plans in the field of silicon carbide substrates, the actual production capacity may be affected by various factors, resulting in a gap between actual output and expectations.