1. Technical Resonance: The advanced packaging supply chain directly benefits from the collaboration between NVIDIA and Intel, focusing on the industrialization of advanced packaging technologies such as Chiplet and CoWoS. Xinsong Technology has a solid technical foundation in semiconductor testing boards and IC substrates: – Its subsidiary, Harbor Electronics, supplies chip testing boards to Intel and is deeply involved in the validation of Intel’s advanced process chips; – The IC substrate business has achieved breakthroughs at the 40nm node and is accelerating penetration into high-end products below 28nm, which aligns well with the high-density and high-precision requirements of Chiplet packaging. As the technological collaboration between NVIDIA and Intel in advanced packaging materializes, Xinsong’s order flexibility in testing validation and substrate support will continue to be released.
2. Order Expansion: Direct beneficiaries of the iteration of AI computing hardware, the collaboration between NVIDIA and Intel will drive the large-scale upgrade of AI servers and high-end chip hardware: – Xinsong’s high-layer PCBs (used in server motherboards and AI accelerator cards) can fully benefit from the growth in AI server shipments; – The semiconductor testing board business will experience explosive growth in testing demand alongside the validation cycles of Intel’s new generation of chips (including heterogeneous computing chips developed in collaboration with NVIDIA). According to industry data, the demand for testing boards for each advanced process chip is approximately 2-3 times that of traditional chips, and as a ‘hidden champion’ in the domestic testing board field, Xinsong’s order growth rate is expected to exceed the industry average.
3. Valuation Recovery: Increased attention to the supply chain + strengthened logic of domestic substitution. NVIDIA’s investment in Intel will significantly enhance market focus on advanced semiconductor packaging and domestic testing/substrate segments. As one of the few domestic manufacturers with a layout of ‘testing boards + IC substrates + high-layer PCBs’, Xinsong Technology is expected to shift its valuation system from ‘traditional PCB manufacturers’ to ‘core service providers in semiconductor advanced packaging’ under the dual logic of domestic substitution and technological positioning. In summary, Xinsong Technology has strong catalysts in technology, orders, and valuation, and it is recommended to closely monitor its order landing rhythm in advanced packaging testing boards and IC substrates, as well as the volume elasticity of high-layer PCBs in AI servers.