Fuhua AI servers and high-speed network layout gradually enter mass production, orders are expected to be until 2029

The AI ​​server and high-speed network layout of Weixun's chassis factory Fuhua (5465) has gradually entered the mass production stage. Among them, the high-performance computing (HPC) server has received orders from the first-tier computer brands in North America, and the 1.6T switch will be shipped to the first-tier AI manufacturers in North America. Both products are expected to be mass-produced and shipped in the first quarter of 2027. As the demand for AI infrastructure grows, the order visibility for high-density hard disk storage systems has already reached 2029.

Fuhua has continued to expand its AI-related product layout in recent years. Among them, it has made progress in high-performance computing servers and has obtained orders from major North American computer brands. Related products are expected to enter mass production in the first quarter of 2027. The company pointed out that high-performance computing servers are products with high unit price and high gross profit, and will become a driving force for subsequent revenue and profit growth after mass production.

In addition, spokesperson Chen Zhaoyi pointed out that the latest generation 1.6T transmission speed switch jointly developed by the company and major Netcom manufacturers is about to enter the mass production stage. The product will be shipped to the first-tier AI manufacturers in North America and is expected to begin shipping in the first quarter of 2027. In terms of optical communications, the first batch of optical modules jointly developed by Fuhua and China Netcom has been shipped in the second quarter of this year. It is expected to enter mass production in 2027 and become another growth driver next year.

In addition to servers and high-speed networks, AI has also driven demand for high-density storage. Chen Zhaoyi said that the company has a major supplier status in the field of high-density hard disk storage systems. Thanks to the widespread use of heat-assisted magnetic recording technology (HAMR) in AI products, the current visibility of related orders has been extended to 2029, which is expected to inject subsequent revenue momentum.

In response to the continuous mass production of new products, Fuhua is simultaneously expanding its overseas manufacturing layout, planning to establish complete cabinet production capabilities in the Thailand factory, and simultaneously building server chassis production capacity, and is expected to introduce mass production in 2027. Fuhua has obtained confirmation of overseas production cooperation with high-performance computing customers. With the introduction of new projects, the Thailand factory will become an important production capacity support for operational growth next year.

Fuhua has also extended its product line to key AI server liquid-cooling components, combining its existing precision sheet metal, cabinet manufacturing and system integration capabilities to further lay out fluid pipelines, quick connectors, welding processes, airtight and watertight testing and complete machine assembly. The Manifold project has entered the customer sample and verification stage, and we continue to jointly develop new generation products, hoping to develop liquid cooling products into a new growth driver beyond AI servers and cabinets.