The rise of AI ASIC, Taiwan PCB board factory has great potential
TechNewsTechnology News
January 3, 2025
Author MoneyDJ
January 3, 2025
Author MoneyDJ
With the continuous advancement of artificial intelligence (AI) technology, although Nvidia GPUs have a leading position in the field of AI computing, more and more companies are choosing to develop their own AI ASICs, especially cloud companies, which are more actively deploying. This effect In addition to driving the expansion of AI ASIC's own market size, it also contributes to the printed circuit board (PCB) industry, especially in terms of improvements in specifications and usage. Although Taiwanese manufacturers are still a minority in entering Huida AI server boards, they are still in the With the rise of AI ASIC, Taiwan's PCB board and material factories have great potential.
The current four major cloud CSP manufacturers, in addition to continuing to use Huida AI chips for training and learning, are also accelerating the development of their own ASIC chips. The main considerations include the high price of Huida GPU chips, which is difficult for customers who need large-scale deployment. For example, the hardware investment cost is too high, and AI ASIC can be optimized for specific needs. In addition, AI ASIC can be designed for specific applications. For example, the AI of self-driving cars has different requirements from general generative AI. Also, because ASIC can Developed for special purposes, the control of energy consumption or power management is expected to be more precise. At the same time, the decentralization of the supply chain can avoid the sources of AI chips being controlled by other factories, and the improvement of autonomy in key technologies is also A big inducement.
According to estimates by foreign securities firms, the market size of AI ASIC will grow from US$12 billion in 2024 to US$30 billion in 2027, with a compound annual growth rate of 34%. The driving forces for AI ASIC include the popularity of data centers, self-driving cars, and generative AI.
For PCB industry players, the production of AI ASICs is quite difficult, including the design of the number of layers, high-speed transmission requirements, heat dissipation and reliability standards. The industry said that compared to the current average server layer number, it is about 16-20 layers. , AI servers require more than 20 layers of high-rise board design to support higher density circuits and signal transmission, and because AI ASIC requires high-frequency and high-speed transmission, PCB materials are developed in the direction of low loss and high heat resistance. According to industry data, the value contribution of the PCB in each AI server board can be 2-3 times that of a traditional server, becoming an important growth driver for PCB manufacturers.
Among the domestic PCB board factories, Xinxing and Zhending-KY are both named as the board factory supply chain of Huida AI chips. If we look at the AI ASIC block, Jinxiang Electronics is named as the biggest beneficiary. Although it is still working hard to break into Huida's supply chain, as the world's largest server board manufacturer, its products have entered the four major cloud CSPs, including multi-layer boards and OAM (accelerator modules) required for UBB (Universal Base Board) The required HDI, thick boards, and Jinxiang Electronics are all supplied. In 2024, the proportion of AI products has reached 20%. In 2025, it is expected that AI servers will advance towards more than 30-layer boards. The difficulty of production will increase, which will further promote ASP. improvement.
Jianding, which is also a major cloud server manufacturer in the supply chain, currently has three of the four major CSP companies. However, compared to Jinxiang Electronics, which is a "server PCB specialty store", Jianding is more like a "PCB department store", and Due to its large scale, Jianding has strong purchasing and management capabilities. The company's strength is to wait until the market reaches a certain scale before aggressively entering the market, and use its management capabilities to gain market share. Moreover, because of its high-end multi-layer PCB, it needs the support of production capacity. Therefore, we are also optimistic about its development in the field of server boards in the future.
Another late-comer is Nanzi Electric. Although Nanzi Electric used to focus on HDI, which is more suitable for consumer electronics, the company it invested in is Huidian, a supplier of thick large boards for Huida PCB boards; During the transformation stage, Zidian has also kept up with the development of the AI market, and can complement and cooperate with Shanghai Electric. The company also has active investment plans for capital expenditures in 2025, upgrading the equipment required for AI server boards, and is expected to be relevant in 2025 High-speed transmission products account for 18-19% of revenue.
As for materials, Taiwan Optoelectronics, the leading copper foil substrate manufacturer, has a leading position in both Huida AI servers and AI ASICs. In response to platform conversion, Taiwan Optoelectronics has adopted M8 grade high-end materials, and product portfolio optimization has driven ASP , the improvement of gross profit margin.
Related links: https://technews.tw/2025/01/03/the-rise-of-ai-asic-tw-pcb-manufacturers-are-expected-to-benefit/
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