Hong Kong stocks concept tracking | NVIDIA may launch new CPO switch products in August, expected to be mass-produced, industrial chain is actively preparing (including concept stocks)

According to a report by the Taiwan Business Times today, NVIDIA may launch a new CPO switch at the GPU Technology Conference (GTC) scheduled for March 2025. The supply chain reveals that this CPO switch is currently in the trial production stage and if progress goes smoothly, it can achieve mass production as early as August of this year. It is reported that the internal ASIC chip of the switch will be developed by TSMC. As of now, TSMC, along with other related supply chain companies, are actively preparing. In terms of product performance, this CPO switch is expected to support signal transmission of 115.2Tbps. Currently, TSMC has verified a small-scale general optical engine with a transmission rate of 1.6Tbps and is testing a 3.2Tbps product, with the former expected to enter mass production in the second half of 2025. However, in order to achieve the target transmission speed of NVIDIA's CPO switch, at least 36 optical engines need to be coupled. The supply chain further speculates that due to the relatively complex design of NVIDIA's GB200 NVL72 rack, this server solution designed for high-efficiency computing may face potential power consumption and heat dissipation issues. CPO, or optoelectronic packaging technology, is a new type of integrated optoelectronics technology. It further shortens the electrical interconnection length between the optical signal input and the computing unit, improving the interconnect density between the optical modules and ASIC chips while achieving lower power consumption. A report from Sinolink on January 12 stated that recent technical releases from Marvel and TSMC indicate the accelerated implementation of CPO in artificial intelligence applications. The industry's demand for efficient communication solutions is driving the rapid adoption of this technology, becoming an important direction for the future development of artificial intelligence infrastructure. A report from Open Source Securities on January 14 pointed out that with the rapid development of global AI, the scale of AI clusters continues to grow, placing higher demands on network architecture, network bandwidth, network latency, power consumption, etc., driving switches toward high-speed, multi-port, low-power consumption iterations. As a core network device in optical communication network systems, CPO switches are expected to enter an industrial opportunity period. HSBC's report in November 2024 stated that NVIDIA's GB200 NVL rack platform has largely returned to normal and is expected to start large-scale production in the first quarter of the 2026 fiscal year. However, HSBC has adjusted its expectations, believing that supply chain issues with GB200 still exist, especially in ODM assembly. HSBC also added that it is currently difficult to determine the specific location of supply chain issues with GB200, particularly as NVIDIA's GB200 rack server architecture becomes increasingly complex. It is expected that supply chain issues with NVIDIA's GB200 will continue into the first half of the 2026 fiscal year (from February 2025 to July 2025). Related industry chain companies for NVIDIA switches: FIT HON TENG (06088): It is reported that NVIDIA's important partners Foxconn and Pegatron have entered the research and development stage for GB300, a product expected to be released at the annual GTC conference in March 2025. With the resource advantage of high vertical integration, Foxconn has already mastered the supply chain of chip modules and assembly in the GB200 series and is currently expanding into areas such as water cooling systems and connectors. China Securities Co., Ltd. previously pointed out that FIT HON TENG is a global leader in precision electronic components, with Foxconn as the company's actual controller. The development of AI is driving the construction of computational infrastructure, and network system architecture is transitioning to higher speeds. FIT HON TENG's layout in high-speed connection systems covers areas such as copper connections and optical modules, and is expected to benefit fully. With the expansion of business scale and the continuous improvement of quality and efficiency, the company's profitability is expected to increase.