Beyond Chips: These 10 Chinese Firms Are Powering U.S. AI Data Centers with Essential Hardware

While much of the global focus in the artificial intelligence (AI) race centers on groundbreaking advanced semiconductors, a crucial, often overlooked segment of the supply chain is heavily reliant on mainland China-listed companies. These firms are quietly manufacturing many of the indispensable components that enable data centers, particularly in the United States, to function.

According to a June 21 report by Michael Hirson and Houze Song at 22V Research, published in collaboration with Analyst Hub Securities, the United States depends on Chinese companies for nearly 30% of its AI-related product imports. The analysts highlighted, "China lacks the capacity to make advanced chips at scale but plays a central role in the less sexy parts of the data center supply chain, including energy storage, transformers, critical minerals, and chemicals." They underscored this as a vital trend for investors to monitor.

This burgeoning sector has significantly boosted China's export figures, with AI-related exports accounting for approximately half of the nation's overall export growth this year. Many of these influential companies are listed on the Shenzhen exchange, contributing to the ChiNext index doubling its value over the past 12 months.

The 22V Research report delved into stocks within the CSI 300 index, which encompasses major companies traded in both Shenzhen and Shanghai. Among the top 10 AI supply chain companies by market capitalization, all but battery behemoth CATL had at least doubled their value in the 12 months leading up to May.

The list includes key players in printed circuit board (PCB) manufacturing, such as Nvidia supplier Victory Giant, which is traded in both Shenzhen and Hong Kong, alongside Dongshan Precision and Shengyi Technology, both listed in Shenzhen. Sanhuan Group, also a Shenzhen-listed entity, specializes in multilayer ceramic capacitors (MLCCs), vital components for storing and releasing energy in chips. Reports suggest that Nvidia has nearly tripled the MLCCs in its latest Vera Rubin AI system.

On the server front, Foxconn Industrial Internet, a subsidiary of the renowned Apple iPhone supplier, earned a spot on 22V’s top 10 list. The company reported an astounding 88.7% surge in cloud computing revenue to 602.68 billion yuan ($88.67 billion) in 2025, positioning it as the largest contributor to its growth. Energy company Sungrow Power was also noted for its significant role.

Three optical and networking companies – InnoLight, Eoptolink, and TFC – were identified on the 22V list. Optical technology is crucial for semiconductors to process signals at near-light speeds. JPMorgan analysts emphasized the importance of optical fiber components in a June 12 report, highlighting China's competitive edge in legacy chips and data center connectivity. They described optics as the main 'picks and shovels' channel, noting that AI data centers demand 5-10 times or even more fiber than conventional server rooms. Overseas order books for these components are reportedly extending into 2027-2028, and China Customs data reveals a four-fold increase in fiber/cable export value year-over-year, with average export prices climbing by approximately three times.

Despite Chinese tech companies generally trading at lower valuations compared to their U.S. counterparts, local investor interest has soared. Recent impressive share price gains have propelled InnoLight and Foxconn Industrial Internet, alongside CATL, into the prestigious 1 trillion yuan market capitalization bracket.