Investor Serenity has identified Belgian wafer foundry XFAB as undervalued, citing its strategic position in the SiC (silicon carbide) and GaN (gallium nitride) supply chains. XFAB, recognized as the only high-capacity pure-play SiC foundry in the West, is poised to benefit from increasing demand for 800V power architectures and AI data centers. The company has achieved mass production of advanced 6-inch SiC processes and is expanding its 8-inch GaN capacity, with plans to enter 8-inch SiC production supported by the U.S. CHIPS Act. Despite a 152% year-over-year growth in SiC revenue, XFAB's market valuation has not fully reflected its potential due to sluggish automotive industry conditions. Partnerships with firms like Navitas and Power Integrations further position XFAB as a key player in AI power and 800V architecture supply chains. Serenity notes that U.S. and EU government subsidies, totaling approximately $50 million and €175.6 million respectively, underscore XFAB's strategic importance. He argues that XFAB's current price-to-book ratio of 1.28x suggests investors are acquiring the business at a low valuation, with significant upside potential as supply chain restructuring and silicon photonics commercialization progress.