ICC News Recently, Dongguan Luxshare Technology Co., Ltd. (hereinafter referred to as "Luxshare Technology"), a subsidiary of Luxshare Precision, has undergone industrial and commercial changes, and a new shareholder Intel (China) Co., Ltd. has been added. At the same time, the registered capital increased from approximately RMB571 million to approximately RMB589 million.

According to public information, Lixun Technology was established in April 2017, the legal representative is Xiong Tengfang, and its business scope includes communication equipment manufacturing and communication equipment sales; optical communication equipment manufacturing and optical communication equipment sales; Manufacture of transformers, rectifiers and inductors, manufacturing of power distribution switch control equipment, etc.

It is reported that for a long time, Intel and Luxshare Technology have been cooperating in the main areas of data center optical/electrical connection, liquid cooling system, power supply system, etc., and provide high-speed interconnection and thermal management solutions for Intel Partner Alliance (IPA) and many enterprises in the technology innovation chain of the general server industry.

Regarding the significance of Intel's strategic investment in Luxshare Technology, an industry chain person told the "Daily Economic News" reporter: "In the context of the current escalating geopolitical (tensions), Intel, as the head semiconductor chip manufacturer in North America, its strategic investment in Luxshare Technology will further help Luxshare Technology knock on the door of the North American server market, especially AI server-related business." ”

He further added: "Intel's advantage lies in the chip, and the advantage of Luxshare technology lies in high-speed interconnection, for the transmission rate and specification requirements of the next-generation server/switch chip, Luxshare Technology can cooperate with Intel to carry out the pre-research and development of high-speed interconnection products in advance, so as to meet the needs of the next-generation chip, and solve the current pain points of server/switch in transmission, such as the loss of long-distance transmission of copper cable connection, and the problem of high bandwidth in power consumption and heat dissipation." ”

In recent years, benefiting from the explosion of AI demand, the server market has ushered in significant growth. According to TrendForce research, global AI server shipments will reach 1.2 million units in 2023, up 38.4% year-on-year, accounting for nearly 9% of total server shipments. The agency estimates that in 2024, global server shipments will increase by 2.05% year-on-year to 13.654 million units. At the same time, the market is still focused on the deployment of AI servers, with AI server shipments accounting for about 12.1%.

In the face of market opportunities, major manufacturers have increased their investment in AI servers and related technologies, and Luxshare Precision is no exception. According to the 2023 financial report released by the company, last year, the company's communication interconnection products and precision components achieved revenue of 14.538 billion yuan, a year-on-year increase of 13.28%, accounting for 6.27% of total revenue. In terms of product lines, it covers five key areas: connectors and cables, communication RF, optical interconnection, thermal management and power supply. In addition, in order to meet the needs of high-speed interconnection within the next-generation server, Luxshare has also launched related interconnection products that support PCIe6.0 and AI data centers, Ethernet high-speed 112G, 224G and even 448G in the switching field.

"In terms of server products, Luxshare itself has sufficient technical support, but because of geopolitical and trade barriers, there is no way to do better and more in North America, and at the same time, it is necessary to consider business opportunities that do not affect existing component products." In April this year, Wang Laichun, chairman and general manager of Lixun Precision, said in the record of investor relations activities. Soon after, she also said: "The R&D investment in AI server-related components takes a long time, the investment is also more, and the technical threshold is higher than that of the general product line of consumer electronics, but it can be predicted that Luxshare Technology, as the BG (business group or business department) of our communication industry sector, will be an important channel for the company's profit contribution in the future." ”