Shengyi Technology, a leading copper-clad laminate (CCL) producer, has denied that Nvidia canceled orders for its M9 materials because of quality problems.
On November 11, an investor asked Guangdong Shengyi Technology Co., Ltd. (Shengyi Technology, 600183.SH) on an investor interaction platform whether the company’s M9 had been dropped by Nvidia over quality issues and whether the company had any undisclosed material matters.
Shengyi Technology said it has not received any notice from any end customer canceling orders. Production and operations are currently normal and orders are full. The company declined to comment on the source or intention of related claims circulating online recently.
The company’s website states that Shengyi Technology was founded in 1985 and is a core global supplier of electronic circuit base materials covering research and development, production, sales and service. CCL output grew from 600,000 square meters a year when the plant was established to 140 million square meters in 2024. Products are mainly used for single-sided, double-sided and high-layer-count circuit boards and are applied in high-computing-power and AI servers, 5G antennas, next-generation communication base stations, large computers, high-end servers, aerospace, chip packaging, automotive electronics, smart home devices, industrial control and medical equipment, home appliances, consumer terminals and other mid- to high-end electronics.
Financial reports show third-quarter revenue of 14.182 billion yuan, up 78.76% year on year, and net profit attributable to shareholders of the parent company of 3.44 billion yuan, up 238.4%. Revenue for the first three quarters was 33.208 billion yuan, up 61.1%, and net profit attributable to the parent was 6.727 billion yuan, up 175.36%.
The reports said the increase reflected conditions in the CCL business, including rapidly rising raw-material prices and continued strong growth in demand for high-end products. Products the company developed earlier contributed profit after reaching the market, expanded capacity was released in time to meet demand, and the sales mix was adjusted. CCL sales volume rose, and CCL revenue and gross profit increased. Returns on external investments were also substantial and lifted profitability.
In the circuit-board business, the reports said subsidiary Shengyi Electronics Co., Ltd. benefited from strong demand in AI computing. The company focused on its mid- to high-end positioning, advanced capacity release, technology upgrades and quality control. The share of higher value-added products rose and its competitive position strengthened.
M9 is an industry grade of high-grade, high-speed CCL, the core base material for printed circuit boards. Interest in M9 is linked to Nvidia’s next-generation AI computing platform.
Research reports from Zhongxin Jiantou Securities and Zhongyin Securities, among others, have said Nvidia’s Rubin platform is expected to use higher-grade CCL. M9 is described as a candidate material for some computing, switching and backplane structures in Rubin servers. The upgrade involves materials including low-loss resin, low-roughness copper foil and quartz fiber cloth.
A research report issued by Shenwan Hongyuan Securities in July this year said Shengyi Technology has supplied M8-grade CCL for Nvidia GB300 switch boards and is the only mainland China manufacturer to have passed Nvidia’s M9 certification for the next-generation platform.
At its semi-annual results briefing, Shengyi Technology said it is cooperating with major domestic and overseas end customers on AI-related projects and continues to supply terminal and PCB customers with more demanding materials. It said it offers a full range of high-speed products for different applications, that its ultra-low-loss products have passed material certification by multiple domestic and overseas end customers, and that some of those products are already in volume supply.
Shengyi Technology (600183.SH) closed at 76.88 yuan per share on November 11, up 8.39%.
Original article: https://m.thepaper.cn/newsDetail_forward_34455275
