As demand for AI servers keeps expanding, competition among upstream copper clad laminate, or CCL, suppliers is no longer just about specifications. PCB industry analyst kokycpcb said in a recent post on X that being a market leader or having a technical edge does not guarantee access to Nvidia orders. What decides allocation, he wrote, is a five-part test: technology, lead time, sales execution, feedback from PCB makers, and end-customer satisfaction.
Order allocation is shifting beyond material specs
The analyst’s main point was that CCL order allocation in the AI era has moved away from a simple materials race and toward a broader comparison of execution and supply-chain fit. Even if a supplier meets the required specifications, it may still struggle to secure stable allocation inside Nvidia’s ecosystem if delivery is slow, coordination with PCB manufacturers is weak, or customer response is not fast enough.
He listed five deciding factors:
- technology
- lead time
- sales execution
- actual feedback from PCB makers
- end-customer satisfaction
That view matches the current supply-chain backdrop described in the report. AI server generations are changing quickly, specifications are being upgraded at a fast pace, and PCB makers are placing as much weight on supply stability and coordination as they do on performance.
Shengyi Technology seen as meeting all five conditions
In kokycpcb’s assessment, Shengyi Technology (600183) is the CCL supplier that currently satisfies all five conditions at the same time. He said Shengyi’s share of orders inside Nvidia’s ecosystem is likely to become more important over time.
ABMedia said that view lines up with recent industry reporting. A supply-chain survey by TF International Securities analyst Ming-Chi Kuo said Shengyi is the leading candidate in the material evaluation process for Nvidia’s NVL576 switch tray. Kokycpcb had also argued that Nvidia is running a dual-track testing strategy, with PTFE as the preferred option and hydrocarbon resin, or HC, as a transitional solution. Nvidia is expected to make its final material decision by the end of 2026, and the eventual allocation among CCL suppliers should become clearer at that point.
Taiwan’s top four CCL makers are separated by execution, not just technology
When discussing Taiwan suppliers, kokycpcb said the gap among the top four is not large if the comparison is limited to technical specifications. The real dividing line, he said, lies in business flexibility, delivery speed, relationships with PCB makers, and responsiveness in customer service.
Using that standard, he said one Taiwan-based CCL supplier with strong vertical integration is positioned to stand out. He did not identify the company by name. Based on the industry structure cited in the report, ABMedia said the most likely candidate is Nan Ya Plastics (1303).
The report listed Taiwan’s four major CCL names as EMC (2383), TUC (6274), ITEQ (6213), and Nan Ya Plastics (1303). Among them, Nan Ya Plastics, part of the Formosa Plastics Group, has a higher degree of in-house production for upstream materials, including epoxy resin, glass fiber cloth, and copper foil, all of which are key CCL inputs. Its operations also extend downstream into CCL as well as substrate and PCB businesses within the group, giving it a relatively complete supply-chain structure.
According to the report, that structural advantage is easier to convert into tighter control over lead times and more stable raw-material supply, which fits the factors highlighted by kokycpcb. By comparison, EMC, TUC, and ITEQ are described as more specialized CCL makers that rely more heavily on external raw-material sourcing.
Three follow-up points are now in focus
Kokycpcb also said investors should keep watching whether the other three long-established Taiwan suppliers, often referred to locally as the "CCL Big Three," could lose share over the next few cycles.
A few weeks ago, rumors that co-packaged optics, or CPO, could replace copper transmission briefly hit the share prices of those three companies. After supply-chain sources pushed back on that claim, the stocks rebounded on the 18th, showing that the market still has strong expectations for demand tied to high-end CCL products.
The report highlighted three areas to watch next:
- Nvidia’s final material decision before the end of 2026;
- the actual allocation each CCL supplier receives in the NVL576 switch tray program;
- whether vertically integrated suppliers such as Nan Ya Plastics can turn lead-time and supply advantages into real orders and earnings results.