China: China's Kunshan emerges as AI server manufacturing hub with complete supply chain.
May 18, 2026
Storyline China's Kunshan emerges as AI server manufacturing hub with complete supply chain East China's Kunshan city is leveraging its mature industrial chain and its dual computing power to manufacture artificial intelligence servers- which are the core computing units of AI data centers. The city is home to both supercomputing and intelligent computing infrastructure with the Zhongke Controllable Information Industry Co. a prime example. At the company's smart manufacturing workshop, a finished AI server rolls off the production line roughly every 70 seconds. Beyond its impressive production speed, the highly flexible single production line can manufacture over a hundred different models of AI servers, with all core components of every unit sourced from local suppliers. The company's chairman says the region has played a strategic role in their success. Nie Hua, chairman, Zhongke Controllable Information Industry Co., Ltd.: "The Yangtze River Delta region, Kunshan in particular, boasts the best supporting and supply capabilities in the country. When there is a global shortage of substrates, we are able to fully leverage the supply advantages from local manufacturers in Kunshan." Looking ahead, the company is aiming to deepen domestic independent innovation and build a more resilient, fully localized industrial ecosystem. Nie Hua, chairman, Zhongke Controllable Information Industry Co., Ltd.: "Many of our technological products have entered the 'deep-water' zone of development. We need to drive upstream and downstream enterprises in the surrounding areas to form an industrial innovation consortium. We emphasize the 'three 100 percent' goals: 100 percent of design work completed domestically, 100 percent of manufacturing done domestically, and 100 percent of supply of key component-level materials secured domestically." According to a report from International Data Corporation, Chinese GPU and AI chip makers captured nearly 41% of the country's AI accelerator server market last year. [Restrictions: No access Chinese mainland]
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