Today, the news that Luxshare Precision welcomed Intel’s investment in the company attracted great attention from the market. Tianyancha App shows that Dongguan Luxshare Technology Co., Ltd., a subsidiary of Luxshare Precision, has recently undergone industrial and commercial changes. Intel (China) Co., Ltd. was added as a shareholder. At the same time, the registered capital increased from approximately 571 million yuan to approximately 589 million yuan. A reporter from the Financial Associated Press learned from Luxshare Precision that this situation is true.
In response to Intel's investment in Luxshare Technology, relevant industry chain personnel analyzed to reporters that under the current background of escalating geopolitical risks, Intel, as the leading semiconductor chip manufacturer in North America, strategic investment in Luxshare Technology will further help Luxshare open up the North American AI server market.
Perhaps affected by this news and Apple's release of Apple Intelligence and other news, Luxshare Precision's stock price soared on June 17, with an intraday increase of 9.75%. It closed up 7.71% at 37 yuan per share, with a total market value of 265.66 billion yuan.
It is understood that Luxshare Precision has cooperated with Intel in many fields. The main cooperation businesses include data center optical/electrical connections (collectively referred to as high-speed interconnection products), liquid cooling systems, power systems, etc. Luxshare Technology also provides complete high-speed interconnection and thermal management solutions for Intel Partner Alliance (IPA) and many companies in the general server industry technology innovation chain. In addition, Luxshare Technology is also a manufacturer of IntelOCSP community components and solutions. It has been selected into the recommended catalog of the Open Common Server Platform (OCSP). The series of products include high-speed cables, high-speed connectors, cooling fans, and cold plate solutions.
"Intel's advantage lies in chips, and Luxshare's advantage lies in high-speed interconnection. In view of the transmission rate and specification requirements of next-generation server/switch chips, Luxshare can work with Intel to conduct pre-research and development of high-speed interconnection products in advance to meet the needs of next-generation chips, and to specifically solve the pain points of current server/switch transmission, such as the loss of long-distance transmission of copper cable connections, high bandwidth power consumption and other issues." The above-mentioned industry chain person further said.
With the NVIDIA GB200 fire copper connection, Luxshare Precision's communication server business began to attract market attention. At present, Luxshare Precision, which is famous for its "fruit chain", is working hard to expand its business territory and begin to establish in-depth cooperation with more head server customers.
In addition to Intel, at the company's 2023 online performance briefing, Luxshare Precision was asked by investors "Will it reach cooperation with Nvidia?" At the meeting, Luxshare Precision responded positively to its relationship with NVIDIA for the first time, saying: "We have indirect and direct services for cloud computing and data center customers including this customer."
On the other hand, with the rapid development of the domestic electronics and semiconductor industry, Intel has also frequently made moves to deeply deploy the domestic electronics industry chain. The investment success stories column on Intel's official website shows that A-share listed companies Kangxi Communications (688653.SH), Montage Technology (688008.SH), Huaqin Technology (603296.SH), etc. are all Intel's invested companies.