Asia Vital Components (AVC), a Taiwanese cooling system company, will invest US$400 million in Henan Province in northern Vietnam and has obtained an investment registration certificate issued by the Henan Provincial authorities. This is the tenth adjustment made by AVC after obtaining permission from the Vietnamese government in October 2020. The plan is implemented by AVC Technology's branch in Vietnam, with investments of US$165 million, US$35 million and US$200 million in three phases. The first and second phases will be officially operational in September 2022 and October 2024 respectively. The US$200 million third phase of the project is expected to be put into operation in March 2025 and October 2026 respectively. This Vietnam investment project will prepare to produce cooling devices, computer cases, computer fans, computer servers and other products in Vietnam.
What kind of skills does Qihong Technology, a veteran computer radiator manufacturer, have to invest in setting up a factory in Vietnam at such a high price?
The answer is to benefit from the cooling system that is indispensable in AI systems. AVC has been a super partner with Nvidia for 20 years, allowing multi-processing high-temperature servers to quickly cool down. AVC is now developing a liquid cooling system to allow AI infrastructure equipment Maintain temperature to ensure proper operation.
AVC Chairman Qingxing Shen, who started making radiators decades ago to cool the basic aluminum rails of computers, is developing liquid cooling systems that can keep pace with Nvidia's popular Blackwell AI chips and systems.
Shen Qingxing personally won over the heavyweight customer Amazon. In order to get orders from Amazon, he set up an office opposite Amazon's Seattle headquarters. He finally successfully won the cooperation business in 2014, and subsequently received an order from Microsoft.
It is no exaggeration to say that the artificial intelligence industry cannot exist without Taiwan. The main reason is that in addition to the production of AI chips in Taiwan, almost all hardware components that maintain the AI ecosystem rely on the technical manufacturing of Taiwanese companies. Huang Renxun, CEO of Huida, also said that many unsung heroes have created the AI ecosystem, including Qi. Hong Technology. The high temperature generated during complex AI operations will melt the server. AVC's Liquid Cooling Solution can normalize the temperature of the server and make the AI system more efficient. It is an indispensable and important component for Huida.
As the U.S. election comes to an end, the resurgent Trump administration is ready to impose tariffs and "protection fees" on Taiwan. Although AI cannot exist without Taiwan, when AI peripheral suppliers leave to invest in Southeast Asian countries, Taiwan's grassroots workers and Small and medium-sized manufacturers may face great survival challenges.
This article Huida AI ecosystem’s hardware super partner: cooling system provider Qihong Technology invests US$400 million in Vietnam first appeared on Chain News ABMedia.