1.2 billion! Molex heavily invests in Dongguan, adding another giant to the AI server market.
As the competition for computing power in AI servers intensifies, global connector giants are accelerating their capacity expansion.
At the end of January 2026, Molex, a global connector manufacturing giant, reached an agreement with Shijie Town, Dongguan, to accelerate a 1.2 billion yuan expansion plan. Molex has made another move in its China strategy.
01 What business is Molex betting on this time?
Having cultivated the Shijie Town market for 27 years, Molex's core focus for this 1.2 billion yuan expansion is very clear: high-speed connectivity cables for AI servers.
With the exponential growth in computing power demand for large-scale model training and inference, high-speed data transmission links within AI servers and data centers are becoming a key bottleneck in computing power. Traditional server I/O interfaces and cables can no longer meet the low-latency, high-bandwidth requirements of TB-level data transmission, and Molex is a technology leader in this field.
Supporting this investment is Molex's strong financial performance in the global computing power wave. According to third-party monitoring, Molex's global revenue steadily surpassed the $8 billion mark in 2024. Entering 2025, Molex's growth momentum in the data center and telecommunications infrastructure sectors accelerated even further.
Compared to approximately 30% of revenue contribution in 2024, this segment's revenue share climbed to over 35% in 2025, with a year-on-year growth rate reaching double digits, officially surpassing automotive electronics to become Molex's fastest-growing business segment globally. Among these, high-speed connectivity cables for AI servers represent the segment with the highest gross margin and the most demanding market.
According to the project plan, Molex will comprehensively upgrade its Shijie plant, including factory renovation, production line expansion, and multi-process automation upgrades, focusing on core processes such as wire processing, soldering, injection molding, and testing. Upon completion, the project will primarily engage in the design and production of high-speed wire harnesses and cables, directly serving the global AI server and data center market.
02 Why Dongguan?
Molex's decision to anchor its key AI-era production capacity in Shijie, Dongguan, is based on three core advantages of Dongguan.
**The "radius" advantage of the industrial cluster:** Dongguan boasts a complete electronic information industry chain, from basic components to end products, forming a "one-stop" supporting capability. For a connector giant like Molex, this translates to lower supply chain costs, faster response times, and stronger innovation collaboration.
**Shijie Town is the "core area" of Dongguan's electronic information industry.** As a "Famous Town of China's Electronic Information Industry," Shijie is home to over 2,000 electronic information companies, forming an industrial cluster centered on electronic components, electronic equipment, and electronic materials. Since its establishment in 1999, Molex has been deeply integrated into this ecosystem, with its upstream and downstream suppliers and partners spread throughout the surrounding area, forming an efficient industrial collaboration network.
**Full lifecycle service:** The Dongguan Municipal Government and the Shijie Town Government's "full lifecycle service" for major foreign investment projects was a crucial factor in Molex's decision. Molex Group also acknowledged that the government's attention and support safeguarded the project, and the government-enterprise collaboration provided efficient end-to-end services.
During the meeting, Li Hui, Vice Mayor of Dongguan, clearly stated that Molex's industrial layout is highly compatible with Dongguan's electronic information and high-end equipment manufacturing industries. This capital increase and capacity expansion is an important measure for the company to seize new industry opportunities and strategically position itself in the key AI track. This efficient government-enterprise collaboration model not only reduces the company's operating costs but also strengthens its confidence in long-term development.
The Greater Bay Area's computing power backing: Dongguan is located in the core hinterland of the Guangdong-Hong Kong-Macao Greater Bay Area, adjacent to the two major science and technology innovation centers of Shenzhen and Guangzhou, and also possesses a well-developed port and logistics network. This allows Molex's products to quickly reach the global market while deeply embedding themselves in China's local AI industry ecosystem.
03 Molex's Investment Journey in China
As one of the earliest global connector giants to enter China, Molex's investment in China has long surpassed simple "OEM manufacturing," gradually building a complete ecosystem covering R&D, manufacturing, and marketing.
(1) Investment Context: From Single-Point Layout to Global Collaboration
(2) Core Layout: City-Specific Division of Labor and Business Focus
In recent years, Molex's core strategy in China has shifted from a "manufacturing base" to an "innovation center." Faced with the strong rise of domestic connectors and the "substitution wave," Molex has built a moat through technological upgrades, turning passivity into initiative.
Currently, Molex has established dedicated R&D teams in Shanghai and Shenzhen, deeply anchoring itself in high-growth sectors such as 5G, AI, and electric vehicles. This is both an essential path to "rooting itself in China" and deeply integrating into the innovation ecosystem of leading local companies such as Huawei and Lenovo, and a strategic rehearsal for "global layout" leveraging China's supply chain advantages. The dramatic shift in product structure testifies to this transformation: Molex's production capacity in China has shifted entirely from traditional low-to-mid-end connectors to high-value-added fields such as high-speed cables, automotive electronics, and industrial control, completing a qualitative leap from quantity to quality.
Conclusion
Moex's 1.2 billion yuan expansion project in Dongguan is a microcosm of the evolution of the industrial landscape in the AI era. As computing power becomes a core production factor, high-speed components connecting computing power have evolved into the underlying infrastructure determining the competitive landscape.
Moex's increased investment is not only an investment in Dongguan's manufacturing strength but also a profound affirmation of China's core position in the AI industry. For the industry, this move sets a clear strategic benchmark: the deep integration of "high-precision technology" and "deeply rooted localization."
It reveals the path global giants are redefining the Chinese market in the AI era—no longer a simple relocation of production capacity, but a seamless coupling of globally leading R&D capabilities with China's efficient industrial chain ecosystem.
