Fanhua Fully Ramps Up AI Server Production, Expecting Growth Through 2028
Translated from Chinese, summarized and contextualized by DistantNews.
At a glance
- Connector manufacturer Fanhua is aggressively expanding into the AI server market, focusing on high-speed, high-power connections.
- The company anticipates AI-related research and development to drive revenue growth from the second half of 2026 through 2028.
- Fanhua reported a 19% year-over-year revenue increase in the first quarter, with servers comprising over 50% of its revenue.
Connector manufacturer Fanhua is making a significant push into the artificial intelligence server market, identifying high-speed, high-current, and high-power connectivity solutions as its primary development focus for 2026. The company plans to dedicate its resources to R&D in these areas, expecting them to translate into substantial performance growth from the latter half of 2026 and continue through 2028.
During an online investor conference, General Manager Chang Yi-wei explained that as AI servers demand increasing power, Fanhua has upgraded its high-power connectors from 1200 watts to 4200 watts. The company has also enhanced its current-carrying capacity per pin from 30 amperes to 140 amperes, while incorporating designs for efficient heat dissipation and blind-mate capabilities to simplify the installation of large AI modules.
High-speed, high-current, and high-power connectivity solutions will be the main development direction for 2026.
Fanhua has also developed PCIe Gen6 high-speed connectors and is researching the next generation, Gen7. For high-speed cabling, the company is advancing 200G and 400G transmission technologies to mitigate signal attenuation and latency issues common with copper wires. The company's first-quarter revenue reached approximately 1.1 billion yuan, a 19% increase year-over-year, with server revenue climbing to 50-57% of the total, up from 50-55% in the previous quarter.
With the continuous increase in power demand for AI servers, our high-power connectors have been upgraded from the past 1200 watts to 4200 watts.
Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.