ASEAN Finance / Huidrill's New Thailand Plant to Begin Operations by Year-End, Expanding AI and CPO Product Portfolio

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(CNA reporter Pan Zhiyi, Taipei, June 15) Hua Lei-Zhe, Chairman of Huidrill Technology, a specialized surface treatment manufacturer, announced today that while its China plant continues to expand capacity, its new Thailand plant is scheduled to begin operations by the end of this year to meet U.S. clients’ non-China supply chain requirements. The new optical module production line at its existing Thailand facility began operations in July. The Vietnam plant was established in March this year.

Huidrill held a media briefing today. Chairman Hua stated that surface treatment for consumer electronics supplied to global OEMs accounts for over 70% of revenue. However, the company is strategically expanding into forward-looking industries such as AI liquid cooling, next-generation co-packaged optics (CPO), and high-capacity nearline HDDs for AI data centers, aiming to build a diversified, high-margin product portfolio.

Hua said demand for optical module surface treatment has surged. In response, the company expanded capacity at its existing Thailand plant, launching a new production line in July with a designed monthly capacity of 400,000 to 500,000 units. The new Thailand plant will have significantly larger production scale, aiming to fully meet customer demand. Production capacity will gradually ramp up starting in 2027, reaching full capacity by 2028.

He further stated that to meet the rapidly growing markets for AI liquid cooling, CPO optical communications, and high-capacity HDDs for AI data centers, Phase I of the new Thailand plant is progressing as planned, with acceptance and formal commissioning scheduled for the end of December 2026.

The new plant is designed to treat and discharge up to 800 tons of wastewater daily, positioning it as one of Thailand’s largest legal high-precision electroplating surface treatment hubs. It will support production of AI liquid cooling modules, CPO optical components, high-capacity HDDs for AI servers, and high-precision electronic components, providing international clients with stable, scalable local supply capabilities.

With the booming development of generative AI and cloud computing, power consumption of high-performance chips continues to rise. To improve chip cooling, major international firms are shifting from traditional air cooling to liquid cooling architectures, driving innovation in surface treatment technologies for thermal modules. Specifically, the bonding surface of cold plates will adopt high-difficulty nickel, gold, and indium plating processes to ensure perfect welding with the chip’s lid/IHS, maintaining long-term thermal stability.

Hua noted that Huidrill entered the AI liquid cooling sector starting in Q4 last year, successfully applying semiconductor-grade precision metal processing to perform accurate electroplating on AI cold plates. To meet stringent international AI server customers’ requirements for cooling performance and product reliability, the company has introduced semiconductor-grade precision inspection equipment and follows the industry’s highest quality standards for process validation and quality control, ensuring the quality of critical plating layers, thermal conductivity, and long-term operational stability of AI cold plates.

According to market research firm LightCounting, the data center optical communications market is projected to grow from USD 19 billion in 2025 to USD 47 billion in 2028, representing a 35% CAGR. The 1.6T and 800G product series are expected to be the primary growth drivers.

To align with customer demand, Huidrill has made strategic adjustments, proactively setting up production lines for 800G+ high-end products at its existing Thailand facility. Mass production is expected to begin in Q3, with a target monthly capacity of 500,000 units.

Additionally, Huidrill’s new Vietnam plant was established in March this year in Ninh Binh Province. It has already obtained key investment and operational licenses, including the Investment Registration Certificate (IRC) and Enterprise Registration Certificate (ERC). Combining CNC precision metal machining with top-tier plating technology, the plant will focus on AI liquid cooling connectors, key metal components for electric vehicles, and metal structures for commercial satellite communication equipment. With diversified plating production lines, it aims to meet customers’ varied plating requirements and high-precision surface treatment needs. (Editor: Zhang Liangzhi) 1150615

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