Shih Den CEO Joseph Kuo on Global AIDC Trends: Demand Will Remain Strong for Next Five Years

Joseph Kuo, CEO of Shih Den (1503-TW), stated today (5th) that demand across the global AIDC supply chain remains extremely strong, with technology companies actively expanding production capacity. He believes demand will remain robust for the next five years. Additionally, due to strong demand, a shortage of transformers has emerged. However, Kuo emphasized that Shih Den’s pre-emptive procurement strategy has ensured that delivery timelines remain unaffected.

Kuo noted that transformer demand remains strong across multiple fronts, including AIDC requirements, tech company factory expansions, and Taipower’s resilient grid initiative. He stressed that demand is comprehensive and expected to remain stable over the next five years.

On the transformer shortage, Kuo explained that the scarcity primarily affects key transformer components. While suppliers are expanding production capacity, he anticipates that supply chain output will gradually increase over the next year. However, if demand remains as strong as current levels, supply-demand gaps may persist.

To mitigate short-term material shortages, Shih Den has implemented product standardization and built up moderate inventory through advance procurement. Kuo highlighted that by adjusting order volumes early and securing pre-purchases, the company has maintained a delivery timeline of approximately 80 weeks.

With rising power consumption from AI servers and GPUs, HVDC (High-Voltage Direct Current) has emerged as a key power solution for AIDCs. Regarding this trend, Kuo stated that ±400V is currently the industry standard, with future development expected to reach 800V. For heavy electrical equipment manufacturers, whether 400V or 800V, existing power distribution systems and power-grade transformers can be adapted without major structural changes, presenting new market opportunities.

Kuo further explained that since heavy electrical providers supply power directly and perform internal conversion via HVDC systems, transformers do not require significant structural modifications—only parameter adjustments. For established transformer manufacturers with deep expertise, mastering these parameter adjustments enables them to meet the HVDC demands of AIDCs effectively.