亚洲会议纪要要点

Highlights from Meetings in Asia We met with companies across the IT Hardware supply chainin Asia last week. The takes were positive, as demand acrosssegments was favorable. A lot of the incremental discussionwas on capacity limitations, component shortages, and multisourcing.WeremainpositiveonourAlfocusednames. EquipmentNEUTRAL EquipmentTim Long +12125264043tim.long@barclays.comBCI, USAlyssa Shreves Ourtakefrom thecompute ecosystem is thatdemandcontinues to outstrip supply,with not much relief in sight. We have a favorable view on most of our companies that have exposure. +1212526 7570alyssa.shreves@barclays.comBCI, US When we visited Asia six months ago, one ofourmain calls was being positive on TPU-exposed vendors as we heard of a doubling ofcapacity in early 2026,and a potential raise of 50% inmid-2026. We believe this is developing at or above that plan. Most EMS vendors have a playhere. Mary Lenox+12125266277mary.lenox@barclays.comBCI, US :CLS.Weview CLS as themain suppliertoTPUand variants,regardless ofsilicon provider.Weare modeling more than a double of TPU-related revenues in 2026 to $2.8Bn from $1Bn in2025.We areless concerned about others being added to the supply chain given the overallgrowth profile of TPU. Clarisse Yu+12125267025xueqian.yu@barclays.comBCI, US ·FLEX.FLEX has traditionallybeen the second source for CPUmanufacture.Whilethere hasbeen some concern about share loss, we think FLEX is still involved, even if revenues don'tgrow like the rest of the ecosystem. FLEX would likely supply lower related products to thisecosystemas well. :JBL.While we do not believe JBLis directly linked to TPU, the company makes the testequipment for the main provider of testing hardware. We see steady growth in testingcapacity as a positive forthis segment at JBL. ·Other oDMs.We believe there is more ODM activity in this supply chain, particularlyfortheTPU motherboard and the full rack assembly, where GOOG had been vertically integrated. Wedon't view these changes asmeaningful to our companiesat this time. Trainium The supply chain sees solid Trainium unit growth this year, but not to the magnitude of TPU. Webelieve something like30%+is more reasonable, and potentiallyhigherif the solution is morebroadly adopted by othercloud players. Barclays Capital Inc.and/or one of its affiliates does and seeks to do business with companiescovered in its research reports. As a result, investors should be aware that the firm may have aconflict of interest that could affect the objectivity of this report. Investors should consider thisreport as onlya single factorin making theirinvestment decision. Please seeanalyst certifications andimportant disclosures beginning on page4.Completed:18-May-26, 01:45 GMT Released: 18-May-26,04:10 GMTRestricted- External the increased production lines and incremental business will lead to a further ramp ofrevenues over the next year or two. We did not pick up any indications of a third sourceenteringthis market. mid-2025 with increased Trainium rack construction in a competitive win. Wehavebeen disappointed bytheothermajoracceleratorlaunch expectedoverthe last few this time if the NA EMS companies will have a meaningfully play in this area. ecosystems. the new capacity coming on-line in Texas. CLS looks well positioned to win scale up Ethernet business as these Al clusters ramp. o FN is a leading supplier of transceivers to NVDA, and 1.6T should start to reinvigorategrowth. JBLis one of the manufacturers for NVDA's switching equipment, which is often pulledthrough with compute. FLEXwould be one of the suppliers to power systems and potentially racks forthesedeployments. o ANET would be well positioned forthe AIfront and back ends in AMD clusters. SANM (not covered) would also be well positioned in AMD powered data centers as perindicationsfromourmeetings. CloudCPU Compared to six months ago, the outlookfor general purpose CPU is much improved with unitdiscussions moving from flat to up 20-40%, and higher ASPs. A lot of this supply chain favorsAsian ODMs over North American EMS, but the increased builds should provide a morefavorablebackdropforEMSandthenetworkingcompanies. Enterprise The toneforenterprise server has been somewhat consistentwith talk offlatto slightly growingunits and higher ASPs. DELL was highlighted as doing well here. Networking There is less networking in the Asia supply chain, though we did meet with one of the majorwhite box players, and had reads from other industry participants. DC Switching Demand for switching is strong and is tracking with increased compute spend. Scale upEthernet is in the early phases but seems like it could be a 2027 driver for the ecosystem. continues to expand, and we view CLS as the main beneficiary. We heard of a ramp at AwSfrom a major WB competitor, but we still see leading share and strong growth for CLS. Metawill likely remain more competitive for all players. we see continued growth here. infl