Apple supplier pivots to AI data centers and humanoid robots (with Mimi Lau)

Kathy Zeng, chairwoman of Lingyi iTech, discusses the company's evolution from a top-3 global component supplier to a module and final assembly manufacturer. The company is pivoting to AI data center cooling, power modules, and humanoid robotics. They have locked in 30+ clients for humanoid robots, including major names in China and North America. Apple's price hikes were anticipated and are not seen as a major impact due to capacity shifts and new technologies.

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Mimi Lau 3.0

Apple supplier pivots to AI data centers and humanoid robots (with Mimi Lau)

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metals

No direct discussion of metals. The focus is on tech and AI. With a strong dollar and rate hike expectations, metals are likely rangebound.

ndx

Kathy Zeng's confidence in AI data center and robotics demand, along with locked-in clients, suggests sustained AI-related investment and demand, which supports tech/NDX. However, Apple's price hikes and memory costs are headwinds, hence cautious.

wti

Geopolitical tensions in the Strait of Hormuz (ship attack) are mentioned as a factor, but oil prices reversed earlier gains. The situation is uncertain, leading to volatility.

Introduces Kathy Zeng, chairwoman of Lingyi iTech, which debuted in Hong Kong after raising over $1 billion. The company is pivoting from smartphone/laptop components to humanoid robotics and data server cooling systems.

Mimi Lau
Kathy Zeng

Lingyi iTech has become a top-3 global component supplier over 20 years, expanding from components to modules to final assembly (FATP). They have 18 factories across 15 countries. They are now focusing on AI data centers (AIDC), leveraging similar processes and capabilities.
Kathy Zeng

In humanoid robotics, they go from components to module to whole system, including testing and standardization. They have around 100,000 employees globally (30,000 outside China) and a huge amount of data to share with industries.
Asks about the impact of Apple's price hikes on Lingyi iTech's demand and margins.

Mimi Lau
Kathy Zeng

They knew about the price hikes earlier as a co-supplier. They have shifted capability into notebooks, which are still growing, and have new technology for new parts. They believe this will help digest capacity, so the impact is not significant.
Asks about the confidence behind targeting 10,000 humanoid robot units this year and 500,000 by 2030, and whether clients are locked in.

Mimi Lau
Kathy Zeng

They have locked in at least 30 different clients, including famous names in China and North America. The Beijing factory focuses on Chinese brands (10+). They have another facility in Chengdu and Zhengzhou, with over 30,000 sets of humanoid robots on hand this year.

They are also expanding factories outside China, including in India, Brazil, Turkey, France, and the United States, following customer requirements.
Asks about projected demand growth for humanoid robots in the US and China.

Mimi Lau
Kathy Zeng

The really big trend will come after 2028, becoming more significant around 2030. They want to be top players by supporting the industry from the beginning.
Asks about CapEx allocation beyond humanoid robots.

Mimi Lau
Kathy Zeng

They are investing in hyper power chargers for AIDC (AC/DC to DC/DC), with 8+ customers making samples. Also investing in thermal solutions (rear door heat exchangers) and other AIDC components.

Power modules for AIDC take more than a year for qualification.
Asks about component shortages across sectors.

Mimi Lau
Kathy Zeng

They are excited about the situation because after 20 years of strong competition, when quality requirements become extremely high, it's their 'show time'. Supply constraints are an opportunity for them.

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