Not Just a Substitution: How Domestic AI Chips Can Open Up a New Track for the Electronic Components Industry

1. Diversified architecture: break single dependence and broaden the boundaries of the component market

1. Differences in mainstream architecture and component requirements

2. Market value: from single-point breakthrough to full bloom

• connector: The demand for 112G/224G high-speed backplanes and board-to-board connectors has exploded, and Huafeng Technology has a share of Shengteng servers reaching20%–30%。
• Optical module: 800G/1.6T optical modules have become the standard configuration of AI clusters, and Zhongji InnoLight and Xinyisheng have achieved large-scale delivery.
• Package substrate: FC-BGA and ABF substrate technology breakthroughs, Shennan Circuit and Xingsen Technology have entered the domestic AI chip supply chain.
• Passive components: The demand for high-capacity, high-temperature, high-reliability MLCC, alloy resistors, and high-current inductors has surged, and Fenghua Hi-Tech and others have entered the AI server supply chain.

2. Demand upgrade: Driven by AI computing power, components are transitioning to high, precision, and cutting-edge

1. Core demand upgrade direction

• high speed internet: The popularity of PCIe 5.0/6.0, CXL, UCIe and other protocols has promoted the development of connectors, optical modules and PCBs.112G/224GEvolution.
• Highly reliable storage: HBM, DDR5, and large-capacity QLC SSD have become standard configurations, driving the upgrade of memory chips, power management, and cooling solutions.
• High efficiency power supply: AI chip power consumption reaches500–1000W, giving rise to the demand for multi-phase power supplies, SiC/GaN power devices, and liquid cooling.
• Advanced packaging: Chiplets, 2.5D/3D, and CoWoS have become mainstream, driving demand for packaging substrates, silicon interposers, and special materials.

2. Domestic breakthrough: from usable to easy to use

• high speed connector: Huafeng Technology and AVIC Optoelectronics have realized the localization of 112G backplane connectors, replacing imported products such as Tyco and Molex.
• Optical module: Zhongji InnoLight's 800G optical modules are delivered in batches, and Xinyisheng's 1.6T products enter testing, breaking overseas monopoly.
• Package substrate: Shennan Circuit’s FC-BGA substrate yield rate has improved, and Xingsen Technology’s 2.5D packaging substrate has entered mass production.
• Passive components: Fenghua Hi-tech AI server-specific MLCC and alloy resistors are supplied in batches, and domestic substitution is accelerated.

3. Ecological reconstruction: from single-point support to full-chain collaboration

1. Packaging and testing: Advanced packaging has become a breakthrough for localization

• Changdian Technology and Tongfu Microelectronics accelerate their layout2.5D/3D、CoWoSAdvanced packaging production capacity, taking orders for domestic AI chips.
• Driven by packaging and testing technology upgradesProbe cards, testing machines, packaging materialsdemand to promote the iteration of domestic equipment and materials.

2. Equipment and materials: demand explodes, domestic substitution accelerates

• Cooling solution: Liquid cooling has become the standard configuration of data centers, and Gaolan Co., Ltd. and Shenling Environment have implemented batch applications.
• Test equipment: The demand for high-computing chip testing machines and probe cards is rising, and Changchuan Technology and Huafeng Measurement and Control are accelerating research and development.
• Semiconductor materials: The localization of high-end photoresist, special gases, and packaging substrate materials is accelerating to support the mass production of AI chips.

3. Business model: from passive supporting to active innovation

• Component companies are deeply involvedAI chip definition stage, jointly design customized solutions to enhance product added value.
• formChip design - component development - system verificationThe collaborative model shortens the product iteration cycle.

4. Challenges and bottlenecks: key links that still need to be broken through

1. Core bottleneck

• high-end storage: High-speed storage such as HBM and DDR5 still rely on imports, and domestic HBM is still in the research and development stage.
• Semiconductor equipment: The self-sufficiency rate of high-end equipment such as EUV lithography machines, etching machines, and thin film deposition equipment is low.
• EDA tools: Chip design software is monopolized by Synopsys and Cadence, and domestic EDA still needs to make breakthroughs.
• advanced materials: Silicon interposers, high-end packaging substrate materials, and special photoresists rely on imports.

2. Development challenges

• Performance and cost balance: High-end components require large investment in R&D, low yield rates, and high difficulty in large-scale mass production.
• Ecological adaptation: Domestic components need to be deeply adapted to the AI chip architecture and software ecosystem, and the adaptation cycle is long.
• international competition: Overseas giants suppress the development of domestic industrial chains through technological blockades and patent barriers.

5. Future trends: from substitution to leadership, opening a new growth cycle

1. Direction of industrial upgrading

• Technology leadership: Cutting-edge technologies such as chiplets, silicon photonics, and wafer-level packaging have become the focus of domestic breakthroughs, achieving lane changes and overtaking.
• Standard setting: Domestic AI chips and components jointly formulate industry standards and gain the right to speak in the industry.
• Scene expansion: From data center toEdge computing, industrial automation, smart cars, device-side AIAs scenarios penetrate, demand continues to expand.

2. Market prospects

• In 2026, China’s AI server market will exceed$30 billion, driving the annual growth of the electronic components market25%+。
• Driven by domestic AI chipsConnectors, optical modules, packaging substrates, passive componentsEntering into other subdivisionsBoth volume and price risestage.
• Collaborative innovation in the industrial chain will promote domestic components from followers toinnovator, reshaping the global semiconductor competition landscape.

6. Core Conclusions