AI drives up demand for PCB high-speed materials, injecting copper foil substrate manufacturers
yahoo! stock market
November 18, 2024
Author: Central News Agency Reporter Jiang Mingyan Editor Zhang Liangzhi
November 18, 2024
Author: Central News Agency Reporter Jiang Mingyan Editor Zhang Liangzhi
(Central News Agency reporter Jiang Mingyan, Taipei, November 18, 2024) The countdown to the release of NVIDIA’s financial report will release the wind direction of the AI server industry. The industry is optimistic that with the growth of AI server and 800G switch shipments, copper foil substrate groups Taiwan Optoelectronics (2383), Taiyao (6274), and Lianmao (6213) will continue to benefit from the trend of PCB high-speed material upgrades.
Copper foil substrate (CCL) is an upstream material for printed circuit boards (PCB). According to corporate assessment, Taiwanese manufacturers have a high market share in the high-speed transmission copper foil substrate market. With the increased volume of higher-end 800G switches, the market share will continue to increase. , and benefited from the continued stocking up to drive performance growth.
800G switches are high-speed transmission specifications in the field of optical communications. With the expansion of large data centers and the large amount of computing and data processing required by AI, the demand for 800G switches is expected to increase.
NVIDIA will announce its financial report on the 20th, and the market regards it as the industry trend of AI servers. According to estimates by the research agency Prismark, the compound growth rate of PCB shipments for AI and HPC servers will be 32.5% from 2023 to 2028; among them, the growth rate of PCBs with 18 or more layers will be 13.6%, accounting for 2028. It will increase by 3 percentage points to 18%.
Taiwan's copper foil substrate group is dominated by Taiwan Optoelectronics, Lianmao, and Taiyao. Lianmao said that its revenue in the third quarter increased by nearly 20% year-on-year, mainly benefiting from the continued growth in demand for general-purpose servers and AI servers; but automotive Electronics declined in the short term due to weak market demand. Overall, as the inventory of high-priced raw materials is eliminated and production capacity utilization continues to increase, the gross profit margin is expected to gradually rebound in the future.
As AI server specifications improve, such as the revision of Nvdia Blackwell series GPUs, it will accelerate the upgrading of high-end electronic materials. Lianmao pointed out that its M6, M7, and M8 grade high-speed materials continue to increase in volume and are provided to many AI GPU and ASIC accelerator card terminal customers. At the same time, M9 grade materials corresponding to 1.6T transmission speed switches have been sent to major terminals and Board factory customer certification.
The legal person pointed out that Taiwan Optoelectronics' revenue growth in the third quarter was mainly due to the increase in shipments from European and American automotive customers, the continued strength of low-orbit satellites and AI servers; however, Taiwan Optoelectronics still needs to observe the GB200 market share of the server business next year, and is optimistic about the high growth rate. The penetration rate of 800G switches has increased. (Editor: Zhang Liangzhi)
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