Intel invested in China-based Dongguan Luxshare Technology, a subsidiary of Luxshare Precision, amid deepening Intel-Luxshare ties as demands for high-speed interconnect products rise with servers.
According to Shenzhen Security Times, Intel has become a shareholder of Dongguan Luxshare Technology, and the latter's registered capital increased from CNY571 million (US$78.69 million) to approximately CNY589 million.
Established in April 2017, Dongguan Luxshare Technology manufactures and sells communication equipment, optical communication equipment, transformers, rectifiers, inductors, and distribution switch control equipment.
Shenzhen Security Times, citing unnamed sources, reported that the cooperation will focus on Luxshare's communications and data center business sectors, enhancing Luxshare's product competitiveness in these areas as the transmission rate and bandwidth of communication-related products are fundamentally linked to the chips they use.
An industry insider told Chinese media MyDrivers that given the escalating geopolitical risks, Intel's investment will further aid Luxshare in penetrating the North American AI server market.
The unnamed source told MyDrivers that Intel's strength is in its chips, while Luxshare is skilled in high-speed interconnects. For next-generation server and switch chips, Luxshare can collaborate with Intel to develop high-speed interconnect products that meet the new chips' requirements.
Luxshare and Intel are collaborating in several areas, including data center optical and electrical connections, liquid cooling systems, and power systems. Luxshare also offers comprehensive high-speed interconnect and thermal management solutions to various companies in the Intel Partner Alliance (IPA) and suppliers in the general-purpose server ecosystem.
According to Luxshare's annual report for 2023, the company has cooperated proactively with leading chip manufacturers in the field of high-speed interconnection in data centers to jointly develop next-generation high-speed connection standards such as 800G and 1.6T for global mainstream data centers and cloud service providers. Luxshare's revenue for 2023 increased by 8.35% year-on-year, with communication interconnect products and precision components rising by 6.27% during the period.
Luxshare sales by segment (CNYb) | ||
Segment | 2022 | 2023 |
Consumer electronics | 179.67 | 197.18 |
Communication interconnect products and precision components | 12.83 | 14.54 |
Automotive interconnect products and precision components | 6.15 | 9.25 |
Computer interconnect products and precision components | 11.28 | 7.49 |
Other connectors and other business | 4.10 | 3.44 |
Source: Luxshare, May 2024
