① It has been reported that Sulusi high-end materials has obtained the final production license from Nvidia; ② HVLP copper foil has the characteristic of low signal loss, which is not only used for AI accelerators, but also for 5G communication equipment and network substrate materials, to achieve efficient signal transmission; ③ Domestic copper foil industry chain companies are in the initial stage of paying attention to HVLP copper foil.
On July 2nd, in the "Science and Technology Innovation Board Daily", it was reported that a piece of news let HVLP copper foil entered the investor's field of vision, it was said that Nvidia's core CCL supplier had adopted it.
According to South Korean Yonhap News Agency's report on July 1st, it is said that South Korean copper foil material supplier Solus Advanced Materials has obtained Nvidia's final production permission and will supply HVLP copper foil to Doosan Electronics, a South Korean CCL manufacturer. It will be mounted on the new generation AI accelerator planned to be launched by Nvidia this year.
HVLP copper foil is a high-end copper foil with a surface roughness of below 0.6 microns (μm), which stands for high-frequency ultra-low profile copper foil. It has advantages such as high hardness, smooth roughening surface, good thermal stability, uniform thickness, etc. and can maximize the reduction of signal loss in electronic products. Due to its low signal loss characteristics, it is not only used in AI accelerators, but also in 5G communication equipment and network substrate materials to achieve efficient signal transmission.
Kwak Geun-man, CEO of Solus Advanced Materials, said: "The first mass production of our HVLP copper foil in the AI accelerator market is a great achievement. The market has been growing rapidly since the appearance of ChatGPT. Besides the 'N company' that has obtained production approval this time, we have also obtained product approval for the copper foil for the next generation AI accelerator of 'A company', and performance testing is also underway. Ultimately, our goal is to supply this copper foil to three North American GPU companies."
CCL is the upstream core material for PCB manufacturing. It is a plate-like material made by impregnating electronic glass fiber cloth or other reinforcing materials with resin, covering one side or both sides with copper foil and then being made by hot pressing. Its main function is to conduct, insulate and support PCBs.
Doosan Electronics became Nvidia's CCL supplier last year, and Solus Advanced Materials was a subsidiary of Doosan Electronics and was spun off in October 2019. Guo Mingqi, a consumer electronics analyst, previously pointed out that Doosan Electronics and Taiwana's CCL suppliers for Nvidia AI servers have supply ratios of about 90-95% and 5-10%, respectively. It is expected that by 2024, Taiwana, Doosan Electronics, and Shengyi Technology's supply ratios will be 60-65%, 20-25%, and 10-15%, respectively.
Solus Advanced Materials is currently listed in South Korea. Influenced by the above news, its stock price rose more than 27% on July 1st, but it fell more than 11% today (July 2nd).
Sulzer high-end materials' stock price trend on July 2nd
Domestic related company stocks have been "active" today (July 2nd). Honghe Technology, a supplier of fiberglass cloth (one of the upstream raw materials of CCL), rose by the limit, while Doosan Electronics, its customer, was followed closely. HVLP copper foil supplier Tongguan Copper Foil quickly rose in the afternoon and closed up by 11.88%.
Grace Fabric Technology's stock price trend on July 2nd
Copper Crown Copper Foil's stock price trend on July 2nd
Low attention from domestic industry chain, only a few companies can produce, many companies "do not know too much".
The demand for high-end CCL increases with the demand for AI servers. Guo Mingqi previously stated that the amount of CCL used in AI servers is about 8 times that of traditional servers. Nvidia AI servers are expected to further increase the amount of CCL used after upgrading to the B100 accelerator card specification in the second half of 2024.
Focusing on the material plan of HVLP copper foil. China's HVLP copper foil industry started relatively late. In addition, its core technology has long been monopolized by overseas leading companies such as Japan and South Korea, and the product is mainly imported.
The reporter of "Science and Technology Innovation Board Daily", as an investor, called the securities office of Tongguan Copper Foil today (July 2nd). Its staff said that the company is the only manufacturer in China that can ship HVLP copper foil in large quantities. At present, HVLP copper foil is in the stage of increasing production capacity, and more than 100 tons of delivery were made in June with a slow increase in customer demand. Its customers include Nanya New Material Technology, Taiwana and Taiyo Technology, and part of them supply to Nvidia.
Yihao New Material responded to the "Science and Technology Innovation Board Daily" that the product parameters of its HVLP copper foil are very mature. Customers have placed orders and the company has sent samples. The product is currently in the testing and verification stage. However, the company also stated that HVLP copper foil is still in the stage of domestic substitution, and the time-consuming process has uncertainties.
Overall, domestic copper foil industry chain companies are at an early stage of attention to HVLP copper foil.
According to officials from Shenzhen Fastprint Circuit Tech who responded to the Science and Technology Innovation Board Daily reporter, the current proportion of HVLP copper foil purchases is relatively small, mainly because HVLP copper foil is mainly used in 6G communication and other fields, which have not yet developed. Staff from Shengyi Technology and Wus Printed Circuit both said they are not very familiar with HVLP copper foil, and Shengyi Technology has also entered the supply chain of Nvidia CCL.