In his latest market research briefing, Tianfeng Securities analyst Ming-Chi Kuo unveiled projections indicating that Nvidia’s artificial intelligence (AI) server shipments are poised for a remarkable 150% year-on-year surge in the coming year. Kuo highlighted that Nvidia’s AI server shipments would experience this unprecedented growth alongside the verification of Shengyi Technology’s ultra-low loss Copper-Clad Laminate (CCL).
The latest supply chain survey reveals that Shengyi’s advanced CCL, known as Synamic9GN, has received verification from Nvidia. This development positions Shengyi Technology to commence mass production in the second quarter of 2024, contributing significantly to Nvidia’s AI server motherboard, OAM (accelerator module), and UBB (CCL used in general-purpose substrates).
Founded in 1985, Shengyi Technology is a global core supplier of electronic circuit substrates, specializing in R&D, production, sales, and service. The company’s commitment to high standards, quality, performance, and reliability is reflected in its production of high-end electronic materials widely used across various industries. Shengyi Technology’s extensive product range caters to the manufacturing of circuit boards utilized in home appliances, mobile phones, automobiles, computers, and various medium and high-end electronic products.
Analyst Ming-Chi Kuo Forecasts Explosive Growth
According to him, the current CCL materials for Nvidia’s AI servers are sourced from Taiwan Optoelectronics’ EM892K and Doosan’s DS-7409D, both featuring ultra-low loss properties with high gross profit margins. With the anticipated 150% year-on-year growth in AI server shipments for 2024, there is a noticeable strain on the supply of ultra-low loss CCL. Future AI PCs, in addition to high-end conventional servers and PCs/laptops, are expected to necessitate an upgrade to ultra-low consumption CCL.
After an upgrade to the B100 solution in the second half of 2024, Nvidia is anticipated to significantly enhance CCL usage, given the eight-fold increase in CCL usage for AI servers compared to normal servers. It is anticipated that Shengyi Technology’s income, profit, and stock price performance will be greatly impacted by this rise in demand, especially considering the company’s verification and impending mass production.
At the moment, Taiwan Optoelectronics and Doosan, with supply proportions of roughly 90–95% and 5–10%, respectively, are qualified CCL suppliers for Nvidia AI servers. According to projections, the supply proportions will change by 2024, with Shengyi Technology joining the market at 10-15%, Doosan at 20–25%, and Taiwan Optoelectronics at 60–65%.
Technically speaking, Shengyi Technology is positioned to be an AMD and Intel supplier in the future due to its capacity to satisfy Nvidia’s standards. There are high hopes for the company’s revenue and profit to see significant increases in the upcoming years due to the rapidly increasing shipments of AI servers and the emergence of Shengyi Technology as a new participant.