KOSDAQ-listed company GRT announced on the 4th that it has signed a supply contract worth 90 million yuan (approximately 16.7 billion KRW) with Nangjo Information (Inspur), a major Chinese AI server manufacturer and a giant listed company with a market capitalization of 11 trillion KRW as of March this year. The market expects GRT to benefit from the rapidly growing AI market.
Nangjo Information holds an overwhelming number one position with over 50% market share in the Chinese AI server market. According to research firm IDC, it ranked second worldwide in both server shipments and sales in the third quarter of 2023. It is also the largest server supplier to China’s BAT (BAIDU, ALIBABA, TENCENT). Nangjo Information possesses top-tier technological competitiveness in the field of computing technology. The company is listed on the Shenzhen Stock Exchange in China.
The products included in the order for Nangjo Information are silicon-type thermal pads, phase change materials, and thermally conductive electromagnetic wave absorbing materials used in AI server manufacturing. This is interpreted as an achievement resulting from the company’s internalization of chemical particle modification work.
AI servers inherently generate continuous high heat. The higher the computing power of the server, the more important it is to have thermal pads with high thermal conductivity to prevent failures caused by accumulated heat for stable operation. Thermally conductive phase change materials are attached to CPUs, graphics chips, etc., and absorb heat when the temperature rises, undergoing a phase change and then releasing heat to evenly regulate the temperature.
Thermally conductive electromagnetic wave absorbing materials absorb electromagnetic waves that are harmful to the human body and cause malfunctions in surrounding devices, while also performing functions such as temperature control, insulation, vibration reduction, and sealing. These products developed by GRT can be utilized not only in server manufacturing but also in 5G/6G communication-related products, automobiles and drones, radar, aerospace, and defense industries.
The company explained that the reason GRT has recently formed joint ventures with several major companies is not only due to its technological competitiveness but also its solid financial status compared to competitors. As of December last year, GRT’s total assets amounted to 1.5 trillion KRW (8.2 billion yuan), and its debt ratio was about 79%, maintaining a very stable structure.
According to the American investment bank Bank of America (BofA), the AI server market is expected to grow rapidly at an average annual rate of 50% from last year through 2026, expanding to a scale of 136 billion USD (approximately 184 trillion KRW) by 2026. Since GRT has secured an opportunity to enter the AI market, its future business performance is highly anticipated.
A company official stated, “The growth of the global AI market has recently been highlighted,” adding, “Since many functional new materials are required for AI server manufacturing, we will leverage our comprehensive competitiveness to capture the market.”
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