Walsin Lihwa, a leading stainless steel producer, has made a major breakthrough by entering China’s artificial intelligence (AI) server market. The company now supplies cold-finished stainless steel bars essential for liquid cooling systems used in AI servers. This strategic move reflects the growing need for advanced cooling technologies in data centers dedicated to AI applications, where increasingly powerful chips generate significant heat requiring efficient thermal management. Liquid cooling has become preferred over traditional air cooling due to its superior heat dissipation. Walsin Lihwa’s cold-finished stainless steel bars are critical in these systems, forming components that contact cooling liquids and providing durability, corrosion resistance, and optimal thermal conductivity. These qualities ensure system integrity and high performance under the demanding conditions of continuous, high-powered AI server operation. Since entering the AI server segment in China, Walsin Lihwa has quickly captured nearly 50% of the market share for cold-finished stainless steel bars in this niche. This success is attributed to the company’s expertise in stainless steel manufacturing, ability to meet stringent quality standards, and the overall surge in AI infrastructure investment driven by China’s ambition to lead globally in AI technology. Government initiatives and investments from tech companies have accelerated AI deployment, boosting demand for advanced hardware and cooling solutions. The preference for liquid cooling over air cooling arises from its superior capacity to handle the higher thermal loads of AI chips operating at elevated frequencies and power levels.

Air cooling is less effective in such conditions, increasing risks of overheating and performance degradation, whereas liquid cooling ensures stable, consistent operation and extends chip lifespan. Walsin Lihwa’s cold-finished bars, enhanced through cold finishing to improve surface smoothness, dimensional accuracy, strength, and resistance to corrosion and wear, are ideal for the precision, high-stress thermal environments of AI server cooling components. Industry analysts see Walsin Lihwa’s rapid market penetration as evidence of its adaptability to emerging technological demands and commitment to quality and innovation. By securing a dominant position in AI server cooling materials, Walsin Lihwa stands to benefit from escalating AI infrastructure expenditures within China and potentially globally. The company intends to leverage this leadership to expand product lines and form partnerships with AI hardware manufacturers. As the AI server market evolves, even more specialized and efficient cooling solutions will be needed, positioning Walsin Lihwa well to meet future technological challenges and contribute to AI hardware advancement. In summary, Walsin Lihwa’s entry and swift rise in China’s AI server market highlight the vital role of advanced materials in cutting-edge technology. Their supply of cold-finished stainless steel bars supports crucial liquid cooling systems for high-power AI chips, underpinning the growth and efficiency of AI data centers. Holding about a 50% market share, Walsin Lihwa has secured a strong competitive edge and promising prospects in a rapidly expanding sector.