Shipments of high-speed/frequency CCLs are expected to continue ramping up in 2022, buoyed by strong demand for server applications, as heavyweight datacenter operators Amazon, Google, Meta and Microsoft are set to increase server purchases next year, according to industry sources.
A new round of server replacement boom is expected to emerge in 2022 as Intel and AMD are slated to release their respective new server processor platforms Eagle Stream and Epyc Genoa supporting PCIe Gen 5 in the first half of next year, the sources said.
This will add significant growth momentum to shipments of high-speed/frequency CCLs from Taiwan's makers including Elite Material (EMC) and Iteq, and will also push up their gross margins in 2022, the sources noted, adding that both makers have cleared product validations at Intel and AMD.
Despite the server supply chain still suffering shortage of certain components, EMC and Iteq remain optimistic that their sales of high-speed/frequency CCLs will be able to grow quarter by quarter in 2022, the sources continued.
EMC has reported its November revenue increased 32.96% on year to NT$3.394 billion (US$121.95 million), and its combined sales for the first 11 months of 2021 jumped 42.58% on year reaching NT$35.233 billion.
The company is expected to further ramp up its revenues in 2022 on increasing shipments of high-end CCLs for server applications and growing demand for CCLs used in high-end HDI boards for 400G switches and China-made flagship handset models, the sources said.
Iteq's November sales surged 28.04% on year to NT$2.595 billion, and January-November revenues grew 27.74% on year arriving at NT$29.765 billion. Apart from the server segment, the sources indicated, increasing CCL demand for 5G infrastructure and automotive applications will also help the company upgrade its product portfolios and grow its revenues for next year.
Article translated by Willis Ke
