One of the three bases of AI computing power, the 10 billion switch track is facing a strong outlet, who is the leader?
Author: Cheng Nuo, Editor: Xiaoshi Mei
Switch, which can be translated as "switch", is a network device used for electrical (optical) signal forwarding, and its main function is to provide exclusive electrical signal paths for any two network nodes connected to the switch.
According to the application scenarios, switches mainly include commercial switches and industrial switches, of which commercial switches can be subdivided into three subcategories: data center switches, enterprise network switches (SMB switches), and campus switches.
In the past two years, as AI technology has gradually accelerated its integration into all walks of life, the demand for computing power for large models and massive data has also continued to rise.
In the computing power industry chain, the upstream basic software and hardware are the fundamental links that determine the quality of computing power, such as basic hardware/software such as CPU, memory, database, and operating system, various computing equipment such as servers and terminals, and network equipment such as switches and routers.
According to IDC data, in 2022, the domestic switch market size will be 59.1 billion yuan, accounting for 19.2% of the global switch market, and it is expected that by 2027, the market size is expected to reach 87.8 billion yuan, and the growth rate during the period will be higher than the global growth rate, stable at about 7%-9%.
In the context of the global AI computing power construction process is expected to continue to accelerate, which domestic switch companies may seize the opportunity and take advantage of the momentum?
1. Feiling Kesi
Founded in 1999, it is a leading ODM manufacturer of network equipment in China, mainly engaged in the research and development, production and sales of network equipment products, mainly with three product lines: switch products, routers and wireless products, and communication equipment components.
According to the official website, in the early days of its establishment, the company's main business was to produce communication components such as security units and wiring for Huawei, and in 2009, it introduced production equipment such as placement machines, laid out the R&D and production of network equipment products, and began to engage in the production of Ethernet switches.
In 2010, the company passed the certification of a qualified supplier of H3C (a leading global network equipment manufacturer) and produced switches for it in OEM mode.
With more than 20 years of development, the company has cooperated with network equipment brands through ODM, OEM or JDM models, and has a full range of solution capabilities for product design, engineering development, raw material procurement management, manufacturing, test testing and verification.
In terms of switches, the company mainly develops and produces various types of Ethernet switches such as unmanaged switches, industrial switches, PoE switches, and data center switches, and in terms of port speed, it has achieved coverage of 100 Gigabit, Gigabit and 10 Gigabit.
The company focuses on R&D and innovation, and in the field of mid-to-high-end data center switches, through continuous strengthening R&D investment and technology accumulation, it has achieved mass production and delivery of mid-to-high-end switches such as 100G and 400G. Especially in the field of Ethernet switches, its products can meet the various needs of enterprise and cloud computing data center application scenarios, and can be used as a top-of-cabinet switch or deployed in a distributed backbone network.
2. Ruijie network
Founded in 2003, it is mainly engaged in the R&D, design and sales of network equipment, network security products, cloud desktop solutions, RGOS and other businesses.
According to the official website, the company has been deeply engaged in the field of network equipment and network security products since its establishment. In the early days of its establishment, it focused on the field of enterprise-level network equipment, and successively launched enterprise-level switches, routers, unified operating system RGOS, wireless products and other products.
After 2010, in line with the rapid development of cloud computing and other technologies, the company has successively launched cloud classroom solutions, cloud office solutions, and data center switches with comprehensive cloud computing characteristics while upgrading and iterating the original types of products.
In terms of switch business, in line with market development, the company has made a forward-looking layout in the field of data centers, self-developed and mastered a number of core data center technologies, and has taken the lead in launching 100G data center core switches and 25G/100G data center solutions in the industry.
At present, after more than 20 years of development, the company has grown into a mainstream supplier of white box switches in China, and is also one of the few enterprises with high-end data center switch research and development capabilities, and its products have been widely used in Alibaba, Tencent and Byte since 2018.
In terms of high-end products, the company officially released 400G data center solutions as early as 2019, and continues to innovate based on R&D experience to meet customer needs. Among them, the 400G switch product line alone has a variety of products and solutions suitable for different scenarios, and the products have been unanimously affirmed and recognized at home and abroad from hardware design to performance level.
3. Xinhua III
Founded in 2003, the main business is to provide customers with one-stop digital solutions including cloud computing, industrial Internet, big data, artificial intelligence, information security, edge computing, etc., as well as end-to-end technical services, with a full range of H3C brand servers, storage, network, security, hyper-converged systems and IT management systems and other products.
According to public information, the company was born in Huawei, and in the early days of its establishment, Huawei and 3Com, a global data communication industry giant, held 51% and 49% respectively; from 2006 to 2007, Huawei sold its entire share price, became a wholly-owned subsidiary of 3Com, and officially changed its name to H3C;
In 2008, the company was purchased by Hewlett-Packard, and in 2016, Tsinghua Unigroup invested in the acquisition of 51% of its shares, and it was formally established as New H3C Group.
At present, through the in-depth layout of the whole industrial chain of "cloud-network-computing-storage-terminal", the company has the overall capabilities of all-round digital infrastructure from storage and computing to network, security and terminals, and its products and solutions are widely used in more than 100 countries and regions.
The company adheres to technological innovation as the engine of development, and up to now it has a variety of high-quality products that are in the leading position in China. For example, in the fields of enterprise-class WLAN, non-x86 servers, blade servers, Ethernet switches, etc., its market share ranks first.
In recent years, in terms of switch business, the company has successively released the industry's first 400G campus core switch H3C S10500X-G and 51.2T 800G silicon photonics data center switch in 2022 and 2023, maintaining the industry's first-mover advantage.
According to the data released by IDC, in the first half of 2023, the company ranked first in 100G/200/400G data center switch products in China with a market share of 36.7% in China's Ethernet switch market.
4. Dongtu Technology
Founded in 2000, the leading domestic embedded real-time OS operating system, the predecessor of which is mainly engaged in four major businesses: industrial-grade network communication products, industrial-grade edge control servers, operating systems and industrial software, big data network services and industrial Internet + solutions.
According to the official website, the company was mainly engaged in the R&D and production of industrial Ethernet switches in the early days, and by 2009, it had developed into the third largest manufacturer of industrial Ethernet switches in the Asian market, the eighth largest manufacturer in the global market, and the third largest manufacturer in the domestic market in 2010.
After its listing in 2012, through investment, establishment and acquisition, the company quickly completed the expansion and transformation from a professional supplier of industrial Ethernet switches to a provider of overall technical solutions for industrial interconnection, and gradually formed a fully independent and controllable industrial network, industrial computing, industrial control, operating system and cloud technology and other industrial Internet "root technology" system through continuous increase in R&D investment.
In terms of operating system business, the Intewell industrial Internet operating system launched by the company is the first operating system in China that can meet the functional safety standards of three important industries at the same time: industrial control, rail transit and automotive electronics. It takes the "road system" as the underlying basic platform, with high code autonomy, and has passed the test of the Ministry of Industry and Information Technology's Fifth Institute of Electronics, with a 100% autonomy rate of the kernel and some key codes.
In the field of industrial-grade network communication products, the company currently has two categories of products: independent and controllable industrial Ethernet switches and communication equipment, and TSN time-sensitive network products. Among them, in terms of switch products, the company has fully independent and controllable manufacturing capabilities from chip and software research and development to hardware manufacturing, and the products support a variety of redundant networking mechanisms, which can meet the various needs of special industrial scenarios.
5. Gongjin shares
Founded in 1988, the leading network equipment OEM in China is mainly engaged in four business segments: smart communication, mobile communication, sensor packaging and testing and automotive electronics, of which the smart communication business can be subdivided into network communication business and data communication business, the main products include PON series, AP series, DSL series of network communication products, as well as data communication product switches, 4G/5G small base station equipment, FWA, etc.
According to the official website, the company launched ADSL products in 1998, from the IT industry to the network communication industry, after 2017, it began to gradually extend to the field of data communication, layout into the switch industry, cooperation in the development of high-end data center switches and enterprise-level switches;
In 2020, the company's business model expanded to EMS, and successively introduced a variety of switches and other data communication terminal products, and in 2022, it continued to achieve technological upgrades, completed the prototype design of 100G white-box switches, and the share of campus and SMB switches at home and abroad continued to grow.
At present, deeply cultivated in the communication terminal industry for many years, the company has a deep experience in foundry, the intelligent communication business is mainly based on ODM and JDM models, but also covers OEM, EMS and other foundry modes, is the world's leading broadband communication terminal and data communication terminal manufacturer, has been widely used in Nokia, Sagem, ZTE, Xinhua III, China Telecom and other domestic and foreign high-quality enterprises.
In terms of data communication business, the company's product matrix mainly includes data center switches, campus switches and SMB switches, among which the main products are 100GbE and 400GbE high-speed switches. According to the company's recent reply on the investor interactive platform, its data center 800G switch products are currently in the stage of trial production, and will be delivered in batches as soon as possible after the commissioning is completed.
disclaimer
The content of this article related to listed companies is the author's personal analysis and judgment based on the information publicly disclosed by listed companies in accordance with their legal obligations (including but not limited to temporary announcements, periodic reports and official interactive platforms, etc.), and the information or opinions in this article do not constitute any investment or other business advice, and Market Value Watch does not assume any responsibility for any actions arising from the adoption of this article.
——END——