Shengyi Technology, a leading copper-clad laminate producer, has denied online claims that Nvidia canceled orders for its M9 materials over 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 products had been dropped by Nvidia because of quality issues and whether the company had any undisclosed material matters. Shengyi Technology said it had not received any notice from any end customer canceling orders. It said production and operations are normal and orders are full, and it declined to comment on the source or intent of recent online claims.
The company says it was founded in 1985 and is a global core supplier of electronic circuit base materials spanning research, production, sales and service. Copper-clad laminate output rose from 600,000 square meters a year when the plant was established to 140 million square meters in 2024. Products are used mainly for single-sided, double-sided and high-layer-count circuit boards in applications including 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 products, industrial and medical equipment, home appliances and other mid- to high-end electronics.
According to its financial report, Shengyi Technology posted third-quarter revenue of 14.182 billion yuan, up 78.76% year on year, and net profit attributable to shareholders of the parent of 3.44 billion yuan, up 238.4%. For the first three quarters, revenue was 33.208 billion yuan, up 61.1%, and attributable net profit was 6.727 billion yuan, up 175.36%.
The report said the copper-clad laminate business faced rapidly rising raw-material prices and continued strong demand for high-end products. Products developed earlier contributed profit, expanded capacity was released in time to meet demand, and the sales mix was adjusted, lifting copper-clad laminate volume, revenue and gross profit. Returns on external investments also improved profitability. In printed circuit boards, subsidiary Shengyi Electronics Co., Ltd. benefited from strong conditions in AI computing. The company said it stayed focused on mid- to high-end products, released capacity in an orderly way, upgraded technology and tightened quality control, steadily raising the share of higher-value products.
M9 is an industry grade of high-speed copper-clad laminate, the core base material for printed circuit boards. Market attention on M9 is tied to Nvidia’s next-generation AI computing platform. Research reports from China Securities and BOC Securities, among others, have said Nvidia’s Rubin platform is expected to use higher-grade copper-clad laminate. M9 is viewed as a candidate material for parts of the Rubin server’s computing, switching and backplane structures, with the upgrade involving materials such as low-loss resin, low-roughness copper foil and quartz fiber cloth.
A research report published in July this year by Shenwan Hongyuan Securities said Shengyi Technology has supplied M8-grade copper-clad laminate for Nvidia GB300 switch boards and is the only mainland Chinese manufacturer certified by Nvidia for M9 on the next-generation platform.
At its interim results briefing, Shengyi Technology said it is working with major domestic and overseas end customers on AI-related projects and continues to supply materials with more demanding performance requirements. It said it offers a full range of high-speed products for different uses. Its ultra-low-loss products have passed material certification with multiple domestic and overseas end customers, and some are already in volume supply.
As of the close on November 11, Shengyi Technology (600183.SH) was at 76.88 yuan per share, up 8.39%.
Original article: https://m.thepaper.cn/newsDetail_forward_34455275