(Yicai) May 22 -- Shares of BOE Technology Group rose by the exchange-imposed daily trading limit for a second trading day in a row despite the Chinese display panel giant refuting reports of allying with US chipmaker Nvidia.

BOE [SHE: 000725] closed up 10 percent at CNY5.16 (76 US cents) in Shenzhen today.

BOE has no business cooperation with Nvidia yet, the Beijing-based company said late yesterday. Inferences made by some media lacked factual support, it noted.

On May 20, BOE announced it will cooperate with US materials giant Corning to develop new materials, including optical interconnects, which some media interpreted as the Chinese firm entering Nvidia's supply chain through this tie-up due to the two US companies having an optical communications alliance.

The BOE and Corning partnership will focus on four cutting-edge application technologies: glass-based packaging substrates, foldable glass, perovskite glass substrates, and optical interconnects.

Corning and Nvidia plan to build three new advanced manufacturing plants in North Carolina and Texas to develop and produce optical communication technologies for the chip giant.

BOE's glass-based packaging substrate, perovskite glass substrate, and optical interconnect businesses are still in the technical discussion and verification stages and have not yet reached mass production, nor have they generated such revenue, the company noted. There are significant uncertainties regarding whether and when the firm can achieve mass production and the relevant expected commercial returns, it added.

Based on current business developments, the three businesses will likely have no impact on BOE's financial performance over the next two to three years, it pointed out.

Glass substrates are a crucial material for next-generation packaging tech, offering significant advantages over traditional materials. For example, their high-temperature warpage is reduced by more than 70 percent compared to organic substrates, significantly alleviating a key mechanical failure issue in artificial intelligence chip packaging.

Editor: Martin Kadiev