Not just TSMC! Foreign media praised a factory for entering Huida's supply chain with a single slide rail

Chuanhu Technology. (Picture and Character official website)

[Financial Channel/Comprehensive Report] The AI wave is sweeping the world, and Taiwan plays a key role in the global AI supply chain. In addition to TSMC, which is firmly the global foundry hegemon, there is also a heavyweight manufacturer that has a core position in the AI server supply chain! Foreign media reported that Chuanhu, a major slide rail manufacturer, is expected to capture 70% to 90% of the global market share of high-end AI server slide rails by virtue of its precision manufacturing technology. It also has a presence in Huida GB200 server. In the second quarter of 2026, its gross profit margin will be as high as 87.4%. The amazing profitability has attracted the attention of foreign media.

Technology media "Wccftech" reported that Taiwan's slide rail manufacturer Chuanhu, originally famous for its furniture and kitchenware drawer slides, has successfully moved into the server market with its precision manufacturing technology. It is currently estimated to hold 70% to 90% of the global market share of high-end AI server slide rails. Even Huida's high-end AI servers also need this product.

The report pointed out that the operating principle of the server slide rail is similar to that of the general kitchen drawer slide rail. Both use steel bars and ball bearings to allow the equipment to be pulled out and pushed back smoothly. However, the AI ​​server cabinet is incredibly heavy and requires extremely high load-bearing capacity and precision of the slide rails. Taking the AI ​​server as an example, the thickness of the slide rails on both sides is only about 6.1 mm, but it must be fully pulled out to support a chassis exceeding 40 kg without bending, deformation or jamming.

What’s even more amazing is that each set of slide rails contains more than 100 parts, and the dimensional tolerance must be controlled within 0.02 mm. With the development of high-end AI architectures such as Huida's Blackwell GB200, server cabinets are becoming heavier and heavier, and space must be reserved inside for high-flow liquid cooling equipment and cooling pipelines, which puts the slide rail design under more severe challenges. Once the slide rail fails, it may cause computing equipment worth hundreds of thousands of dollars or more to fall and be damaged. Therefore, large cloud companies and server assembly plants are afraid to easily adopt cheap alternatives.

This also gives Chuanhu strong bargaining power. The report cited statistical data and pointed out that Chuanhu's gross profit margin in the second quarter of 2026 was as high as 87.4%. A set of slide rail kits sells for less than US$100, but can protect AI computing equipment worth millions of dollars. The company has accumulated approximately 3,750 patents, covering stamping production lines, electroplating technology, molds and locking mechanisms, etc., establishing technology and manufacturing thresholds that are difficult for competitors to copy.

In addition, Taiwanese counterpart Nanjun International has also entered Huida's supply chain and become a GB200 partner. However, Chuanhu continues to expand its layout, has approved more than US$600 million in capital expenditures, and plans to build the world's largest server slide rail manufacturing plant to further expand production capacity.