Nvidia Tests HC Clothless CCL for Next-Gen AI Servers, Pressuring PTFE-Linked Suppliers

Nvidia is testing a new PCB material route for its next-generation AI server hardware, according to a supply-chain survey cited by TF International Securities analyst Ming-Chi Kuo. The latest round of evaluation replaces the previously tested clothless PTFE copper clad laminate, or CCL, with a clothless hydrocarbon resin-based CCL for the Rubin Ultra NVL576 switch tray program, which is targeted for mass production in the second half of 2027. After the report circulated, Taiwan Union Technology fell 3.99% and Asia Electronic Material dropped 4.71%. Kuo said the change should not be read as a final material decision, nor as a sign that Nvidia has abandoned PTFE. He said the new HC-based CCL met the switch tray’s high-frequency electrical requirements, though its electrical performance remained below the PTFE option. It still outperformed the M9-grade solution and exceeded the published M10 specification. Shengyi Technology is currently the leading supplier under evaluation, with material references including SG5300N, SG1030N, and SIF09. The report also highlighted a split view on whether HC can improve manufacturing yield. Some analysts see a wider process window, while others point to softness, higher thermal expansion, warpage risk, and copper adhesion challenges. Kuo said PTFE remains a long-term trend in advanced PCB materials, but shipment growth over the next two years still depends on Nvidia’s final material choice, NVL576 adoption, and the progress of Kyber-class rack designs using orthogonal backplanes.