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According to a report by JPMorgan, industry experts predict that the CPO market will begin to grow significantly in 2027, with the market size exceeding $1 billion in 2028 and surpassing $5 billion by 2030.
CPO, or Co-Packaged Optics, refers to the assembly of network switch chips and optical modules in the same slot, forming a co-packaged chip and module.
As the global chip market continues to grow, the demand for CPO is also rising. Not only CPO, but high-speed copper cable connections and PCBs are also showing year-on-year growth.
According to brokerage reports, PCB manufacturers’ overall utilization rate in the first quarter was between 90% and 95%, and the outlook remains positive entering the second quarter.
Based on this logic, in the context of high overall enthusiasm in the computing power sector, focusing on some niche hardware areas is a good choice.
This issue will comprehensively sort out the computing power component field, filter out highly relevant niche areas, and identify representative and popular companies for further research and reference.
The content of this article represents personal views only,and does not constitute any investment advice, guidance, or commitment, and is for academic discussion only.Niche Area 1: Co-Packaged Optics (CPO)Core Logic:CPO, or Co-Packaged Optics, refers to the assembly of network switch chips and optical modules in the same slot, forming a co-packaged chip and module.Popular Companies: Huatians Technology, Zhongji Xuchuang, Xinyi Sheng, Founder Technology, Lian Te Technology, Zhongjing Electronics, Luxshare Precision, Tianfu Communication, Taicheng Light, Xingsen Technology, Bochuang Technology, etc.
Niche Area 2: PCB Concept
Core Logic: PCB, or Printed Circuit Board, is an important electronic component and the support structure for electronic components. Without a printed circuit board, electronic components have no electrical connection medium.
Popular Companies: Founder Technology, Northern Copper Industry, Zhongjing Electronics, Xingsen Technology, Pengding Holdings, Jingwang Electronics, Shennan Circuit, Hude Electronics, Shengyi Technology, Hezhuan Intelligent, etc.Niche Area 3: Optical CommunicationCore Logic:Taiwan Semiconductor Manufacturing Company (TSMC) previously announced the production of interconnected products based on MicroLED. This technology uses optical communication to replace electrical connections, meeting the increasing high communication demands between GPUs in a cost-effective and energy-efficient manner.Popular Companies: Lian Te Technology, Guangku Technology, Yuanjie Technology, Zhongji Xuchuang, Xinyi Sheng, Dekeli, Jinxin Nuo, Shijia Electronics, Taicheng Light, Huamai Technology, etc.Niche Area 4: MicroLEDCore Logic: MicroLED displays are produced by many chip manufacturers for connection products used in the optical communication field, such as TSMC mentioned above.Popular Companies: Aoshikan, Jufei Optoelectronics, Zhaochi Co., Ltd., Mingwei Electronics, Leiman Optoelectronics, Wanrun Technology, Ruifeng Optoelectronics, Zhouming Technology, Sanan Optoelectronics, Hongli Zhihui, etc.Niche Area 5: High-Speed Copper ConnectionsCore Logic: NVIDIA’s chips use high-speed copper connections. According to a report released by Light Counting, sales of high-speed copper cables are continuously growing as they are used for server connections and as interconnects in decoupled switches and routers.Popular Companies: Luxshare Precision, Taicheng Light, Xinya Electronics, Wolong Nuclear Materials, Bochuang Technology, Ruikeda, Chuangyitong, Zhongtian Technology, Jinxin Nuo, Dingtong Technology, Jingda Co., Ltd., Xianying Technology, Shenglan Co., Ltd., etc.Niche Area 6: ComponentsCore Logic: The growth in computing power demand and the construction of data centers rely on numerous components, which in turn drive the development of companies related to electronic components.Popular Companies: Founder Technology, Jianghai Co., Ltd., Zhongjing Electronics, Xingsen Technology, Pengding Holdings, Jingwang Electronics, Shennan Circuit, Hude Electronics, Shengyi Technology, Aohong Electronics, Huazheng New Materials, Jingsai Technology, etc.With the continuous development of artificial intelligence, the hardware industry related to computing power will also experience simultaneous growth. The six niche areas mentioned in this issue are worth paying close attention to.*Reminder: Be cautious of rapid technological iterations; the companies mentioned above face increasing competition risks.
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Disclaimer: The materials in this article are sourced from official media and online news. If there are any errors, please refer to the latest information. This article does not constitute any investment advice, guidance, or commitment, and is for academic discussion only. Please read carefully. The market has risks, and investment decisions should be based on rational independent thinking.