Nan Juen International Co (南俊國際), which supplies rail kits used in servers, has entered the supply chain of Nvidia Corp by securing orders for the US chip giant’s GB200 artificial intelligence (AI) servers.
The Taoyuan-based company has obtained Nvidia’s recommended vendor list (RVL) certification and is expected to complete volume production preparations in the third quarter of this year, with initial shipments likely to begin at the end of this year or early next year, the company said at an investors’ conference in Taipei yesterday.
The server rail kit business is expected to make a larger contribution to the company’s revenue next year, Nan Juen said.
Photo: Lin Jin-hua, Taipei Times
The company also supplies rail kits for non-server applications, including office furniture, kitchenware, home appliances and tool cabinets.
In the first half of this year, server rails accounted for 34 percent of the company’s total sales, up from 27 percent at the end of last year, Nan Juen chief financial officer Vincent Jen (任忠仁) told investors.
Server rails are not something that always stand out or attract attention compared with other components, but they are necessary to ensure that servers can be easily installed, modified, maintained or, if necessary, replaced.
Nan Juen began cooperating with US-based Super Micro Computer Inc in 2002 for the mass production of server rails. It entered the data center supply chains of two major cloud service providers in the US in 2019 and 2022 respectively, a document released after the company’s earnings conference showed.
With the Nvidia deal, Nan Juen is to join King Slide Works Co (川湖科技) in becoming the second rail kit supplier for GB200 servers, and analysts expect the two companies to become primary server rail kit suppliers for the world’s major cloud service providers.
Nan Juen reported a net profit of NT$97.34 million (US$3.05 million) in the first half of the year, compared with a net loss of NT$25.47 million in the same period last year, on revenue of NT$905.81 million, a 56.3 percent increase year-on-year.
Earnings per share were NT$1.49 in the first six months, compared with losses per share of NT$0.42 during the same period last year, while gross margin improved 12.21 percentage points to 24.63 percent.
The company expects its business to steadily improve in the second half of this year, with growth momentum to strengthen further next year, it added.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
A TAIWAN DEAL: TSMC is in early talks to fully operate Intel’s US semiconductor factories in a deal first raised by Trump officials, but Intel’s interest is uncertain Broadcom Inc has had informal talks with its advisers about making a bid for Intel Corp’s chip-design and marketing business, the Wall Street Journal reported, citing people familiar with the matter. Nothing has been submitted to Intel and Broadcom could decide not to pursue a deal, according to the Journal. Bloomberg News earlier reported that Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is in early talks for a controlling stake in Intel’s factories at the request of officials at US President Donald Trump’s administration, as the president looks to boost US manufacturing and maintain the country’s leadership in critical technologies. Trump officials raised the
‘SILVER LINING’: Although the news caused TSMC to fall on the local market, an analyst said that as tariffs are not set to go into effect until April, there is still time for negotiations US President Donald Trump on Tuesday said that he would likely impose tariffs on semiconductor, automobile and pharmaceutical imports of about 25 percent, with an announcement coming as soon as April 2 in a move that would represent a dramatic widening of the US leader’s trade war. “I probably will tell you that on April 2, but it’ll be in the neighborhood of 25 percent,” Trump told reporters at his Mar-a-Lago club when asked about his plan for auto tariffs. Asked about similar levies on pharmaceutical drugs and semiconductors, the president said that “it’ll be 25 percent and higher, and it’ll
CHIP BOOM: Revenue for the semiconductor industry is set to reach US$1 trillion by 2032, opening up opportunities for the chip pacakging and testing company, it said ASE Technology Holding Co (日月光投控), the world’s largest provider of outsourced semiconductor assembly and test (OSAT) services, yesterday launched a new advanced manufacturing facility in Penang, Malaysia, aiming to meet growing demand for emerging technologies such as generative artificial intelligence (AI) applications. The US$300 million facility is a critical step in expanding ASE’s global footprint, offering an alternative for customers from the US, Europe, Japan, South Korea and China to assemble and test chips outside of Taiwan amid efforts to diversify supply chains. The plant, the company’s fifth in Malaysia, is part of a strategic expansion plan that would more than triple
RSS