China’s Component Suppliers Fuel U.S. AI Data Center Expansion

While the artificial intelligence race has largely emphasized advanced semiconductors, a broad range of mainland‑China‑listed companies now produce many of the essential parts that keep data centers operating. According to a June 21 report by 22V Research, published with Analyst Hub Securities, “The United States relies on Chinese firms for almost 30% of its imports of AI‑related products.” The analysts added that although China cannot manufacture cutting‑edge chips at scale, it occupies a pivotal role in the less glamorous segments of the data‑center supply chain, such as energy storage, transformers, critical minerals, and chemicals. “This quiet story is becoming increasingly important for investors to monitor,” they noted.

AI‑related shipments have driven roughly half of the growth in China’s total exports this year, the report said, with many of the firms listed on Shenzhen’s exchanges. Hardware‑focused stocks have led a sharp rally, pushing the ChiNext index— which tracks Shenzhen‑listed companies— up roughly 100% over the past 12 months. The 22V study examined stocks in the CSI 300, which covers the largest firms traded in both Shenzhen and Shanghai.

Among the ten largest AI‑supply‑chain companies by market capitalization, the report found that nine— besides battery giant CATL— had at least doubled in value over the 12 months through May. The list includes printed‑circuit‑board makers such as Nvidia supplier Victory Giant (traded in Shenzhen and Hong Kong), as well as Dongshan Precision and Shengyi Technology, both listed in Shenzhen. Sanhuan Group, also a Shenzhen‑based firm, manufactures multilayer ceramic capacitors (MLCCs) that store and release energy in chips. Nvidia has reportedly increased the number of MLCCs in its latest Vera Rubin AI system by nearly three times.

On the server side, Foxconn Industrial Internet, a subsidiary of the Apple iPhone supplier, appears on the 22V top‑10 list together with energy firm Sungrow Power. Foxconn Industrial Internet reported that cloud‑computing revenue surged 88.7% in 2025 to 602.68 billion yuan (≈ $88.7 billion), becoming the biggest growth driver. Three of the companies highlighted are optics and networking specialists: InnoLight, Eoptolink and TFC. Optical technology enables semiconductors to process signals at near‑light speed. JPMorgan analysts emphasized the importance of optical fiber in a June 12 report on China’s AI edge, noting that “optics is the main ‘picks and shovels’ channel.” AI data centers, they said, need dense, high‑speed connections and use five to ten times more fiber than traditional server rooms. Overseas order books now extend into 2027‑28, and Chinese customs data show fiber/cable export values have risen to about four times the year‑ago level, with average prices up roughly threefold.

Although Chinese tech firms still trade at lower valuations than their U.S. counterparts, domestic investor enthusiasm has kept pace. Recent price gains have lifted InnoLight and Foxconn Industrial Internet into the 1‑trillion‑yuan market‑cap club, joining CATL. —CNBC’s Michael Bloom contributed to this report.

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