In today's increasingly fierce global technology competition, Intel's strategic investment can often cause industry shocks. The soaring market value of Luxshare Technology is not accidental, but is a reflection of Intel's far-reaching consideration of the AI server market.
Intel's strategic layout
Intel's stake in Luxshare Technology not only increased the registered capital of the latter, but also achieved deep binding in the technology and market. This move is based on the prediction of the rapid growth of the AI server market and the recognition of Luxshare's strength in the field of high-speed interconnection and thermal management solutions.
Market opportunity for Luxshare technology
Luxshare Technology, as a communication equipment manufacturer under Luxshare Precision, has a business scope covering communication equipment manufacturing, optical communication equipment sales and other fields. Industry chain analysts pointed out that Intel's investment will help Luxshare Technology further develop the North American server market, especially in AI server-related businesses.
Figure: Intel takes a stake in Luxshare Technologies, revealing its AI server ambitions
Growth drivers of the AI server market
The rapid development of AI technology is driving the explosive growth of the AI server market. According to TrendForce research, global AI server shipments will reach 1.2 million units in 2023, up 38.4% year-on-year, and the proportion of AI server shipments is expected to further increase to 12.1% in 2024.
Lixun Precision's business layout and market performance
Lixun Precision's 2023 financial report shows that the company's communication interconnection products and precision components achieved revenue of 14.538 billion yuan, a year-on-year increase of 13.28%, accounting for 6.27% of total revenue. Luxshare Technology has made remarkable achievements in key areas such as connectors and cables, communication RF, optical interconnection, thermal management and power supply, and has launched high-speed interconnection products that support PCIe 6.0 and AI data centers.
An in-depth analysis of Intel's technical collaboration with Luxshare
Intel's advantage lies in chips, while Luxshare's advantage lies in high-speed interconnection. Industry chain people further pointed out that Luxshare Technology can cooperate with Intel to carry out pre-research and development of high-speed interconnection products in advance to meet the needs of the next generation of chips and solve the pain points of servers/switches in transmission.
Epilogue
Intel's stake is not only a recognition of the market value of Lixun's technology, but also a trust in its technical strength. In the context of the rapid development of the global AI server market, the market value of Luxshare Technology has soared, indicating that its investment in AI servers and related technologies will bring rich returns. This cooperation will undoubtedly promote Luxshare Technology to occupy a more important position in the global AI server market.
