On October 19, Huafeng Technology made an announcement regarding its strategic investment in the Phase II expansion of the high-speed cable module project. The estimated investment for this phase stands at approximately 362 million yuan, propelling the total project investment to a substantial 612 million yuan. This expansion will encompass the establishment of 17 production lines, coupled with backend support equipment and molds, situated in Mianyang City, Sichuan Province. The construction timeline is set for 18 months.

Huafeng Technology clarified that this investment is driven by the objective to capitalize on the burgeoning opportunities for capacity expansion within computing infrastructure sectors, notably AI servers and data centers. By doing so, the company aims to tackle the prevalent shortage of high-speed cable module production capacity and, in turn, fortify its core competitiveness in the realm of domestic substitution.