Mainboard-listed InnoTek approved as vendor for Nvidia, Shenzhen-listed IEIT Systems
The group has been proactively engaging new customers in AI-related fields over the last two years
[SINGAPORE] Mainboard-listed InnoTek has been approved as a vendor for Nvidia Corporation and Shenzhen-listed IEIT Systems as at September this year.
This comes as two subsidiaries of the precision components manufacturer clinched projects to produce components for Nvidia and IEIT Systems, the company said in a Monday (Oct 13) bourse filing.
Lou Yiliang, chief executive officer of InnoTek, said that the company is investing in various high-end precision equipment to support Nvidia and other artificial intelligence (AI) projects. This will provide InnoTek with additional capacity and allow it to build on its track record in the graphics processing unit (GPU) space to secure new opportunities, Lou said.
InnoTek’s subsidiary Magix Mechatronics (Dongguan) Company has secured initial precision machining orders for components used in Nvidia products, with production expected to commence in Q4 FY2025, the group said.
It added that it has been “proactively engaging” Nvidia – which manufactures high-end GPUs essential for training and running AI models – by delivering prototypes to support its AI server platforms and data centres.
Another InnoTek subsidiary, Sun Mansfield Manufacturing (Dongguan) Company, has been awarded a new project by IEIT Systems, a provider of data centre and cloud computing infrastructure listed on the Shenzhen Stock Exchange.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
IEIT is part of the Chinese state-owned Inspur Group, which is the country’s largest server manufacturer and one of the top global suppliers by market share, InnoTek said. Inspur Group designs, develops and manufactures high-performance servers, storage systems and AI computing platforms, with customers in more than 120 countries.
InnoTek expects the production of metal casings and components for GPU unit servers for IEIT Systems to commence in October.
“Over the past two years, the group has been proactively engaging new customers in AI-related fields, while investing in new product development for GPU server products, such as advanced GPU server chassis and liquid-cooling systems, in response to growing demand across sectors such as AI and cloud computing,” the company said.
Business growth and new sectors
In an interview with The Business Times in February, InnoTek spoke of plans to transform its business by focusing on future-oriented sectors with growth potential to diversify and scale. These include sectors such as electric vehicles and GPU servers, which is riding the AI wave.
The company started to manufacture GPU server components in recent years, under a division dedicated to new businesses that it set up in 2022 after the pandemic.
For FY2024, its full-year revenue grew 15.8 per cent year on year to S$238 million amid improved sales volumes across nearly all business segments. In tandem with topline growth, its attributable net profit rose by 23.4 per cent to S$5.8 million.
The company bought back 671,500 shares in April at an average price of S$0.37 apiece in its first share buyback since 2013.
InnoTek shares ended Friday 0.9 per cent or S$0.005 lower at S$0.55.
Copyright SPH Media. All rights reserved.
