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OptionsOracle AI China Supply Chain Investment Panorama
$Oracle(ORCL.US)
Oracle's AI Supply Chain Investment Overview, categorized by the industrial chain segments of "servers, optical modules, links, AI power supply (power generation/diesel backup/backup power), and PCB," the following is a breakdown of key information and business connections:
1. Server Segment
Foxconn Industrial Internet (FII): As the primary ODM (Original Design Manufacturer) for Oracle's server racks, it is responsible for the Stargate project (Oracle's AI infrastructure initiative).
2. Optical Module Segment (Core Component for AI Computing Power Transmission)
Optical modules are critical for high-speed communication in data centers. Several companies have entered the market through "direct supply, acquisition of OEMs, or technical adaptation":
Jiayuan Technology: Acquired a 13.59% stake in Enda Tong through a "¥150 million acquisition + ¥350 million capital increase." Enda Tong is Oracle's main supplier, providing 100G to 1.6T high-speed optical modules, accounting for 1/3 of Oracle's demand.
Tengjing Technology: Plans to acquire Xunte Technology (an OEM for Finisar, a major global optical module manufacturer) to indirectly enter Oracle's supply chain (Finisar is an optical module supplier for Oracle).
Huilv Ecological: Acquired Wuhan Junheng, an OEM for Finisar, whose end customers include Oracle.
InnoLight/YOFC: Confirmed as Oracle suppliers in Citigroup's optical module report. Industry research indicates that YOFC's future market share may reach 20-25% (the top three North American optical module suppliers account for 50% combined).
Dongshan Precision: Holds a 15% share in Oracle's optical module supply through its stake in Source Photonics.
Cambridge Technology: Indirectly supplies 800G optical modules to Oracle's data centers through Cisco, accounting for 30% of Cisco's order.
3. Link Segment (High-Frequency, High-Speed Data Transmission)
Xinya Electronics: Provides high-frequency, high-speed data cables to Oracle through Amphenol (a connector giant). Note: "Oracle accounts for a small share," making it an indirect supplier.
4. AI Power Supply Segment (Energy Security for Stable Data Center Operation)
Divided into "power generation, diesel backup, and backup power":
Power Generation: Sanhuan Group is the exclusive supplier of electrolyte separator plates for Bloom Energy (a global hydrogen power company), which is Oracle's power supplier (contract signed in July).
Diesel Backup: Weichai Heavy Machinery indirectly provides diesel generator services to Oracle through its U.S. partner PSI.
Backup Power: Narada Power has orders worth over ¥500 million from Oracle, with further business expansion underway.
5. PCB Segment (Hardware Foundation for Servers)
Guanghe Technology: Indirectly supplies PCB boards to Oracle through overseas clients like Dell.
Dongshan Precision: Uses Multek's (a high-end PCB manufacturer) technology to adapt to Oracle's AI server orthogonal backplane solution (currently in certification phase).
Key Takeaways
The above outlines Oracle's AI infrastructure (data centers, servers, optical communication, power supply, etc.) supply chain in China and how domestic companies participate through "ODM/OEM, acquisitions, technical adaptation, and indirect supply." The optical module segment is the most competitive (multiple companies entering via various paths), while power and PCB segments highlight "technology + global supply chain" features. The server segment is dominated by industry leader Foxconn Industrial Internet (FII) as the primary ODM.
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