Qincheng Secures Liquid Cooling Cabinet Orders from US CSPs, Aims for Over 10% Revenue Share from Cabinets This Year
Qincheng, a major server chassis manufacturer, has secured liquid cooling cabinet projects from two large North American Cloud Service Providers (CSPs). The company aims for its cabinet business to account for over 10% of its revenue this year, and is considering strategic partnerships or acquisitions to further expand in the AI data center market.
📋 Article Processing Timeline
- 📰 Published: May 8, 2026 at 16:17
- 🔍 Collected: May 8, 2026 at 16:32 (14 min after Published)
- 🤖 AI Analyzed: May 8, 2026 at 17:42 (1h 10m after Collected)
Central News Agency
(Central News Agency reporter Tseng Jen-kai, Taipei, 8th) Qincheng, a major server chassis manufacturer, is actively entering the new cabinet market. Qincheng CEO Chen Ya-nan revealed today that the company has secured liquid cooling cabinet projects from two large North American CSPs (Cloud Service Providers). The goal is for the cabinet business to account for over 10% of this year's revenue, and future strategic collaborations or acquisitions are not ruled out.
Qincheng held an online investor conference today. Chen Ya-nan stated that AI is driving changes in data center architecture, shifting from a traditional "single machine" mindset to a "system" mindset. Consequently, Qincheng, which originally focused on server chassis, began entering the cabinet market last year to assist clients with system-level design.
Chen Ya-nan said that Qincheng started entering the cabinet market last year, initially mainly shipping components. This year, through cooperation with CSPs, SIs (System Integrators), and supply chain partners, they have gained project opportunities and have secured liquid cooling cabinet projects from two large US CSPs. The goal is for the cabinet business to challenge a revenue share of over 10% of the company's total revenue this year.
In addition, Qincheng stated that as the company newly enters the cabinet market, there are some areas that need to be strengthened, including client development and technical capabilities. Future strategic collaborations or acquisitions are not ruled out.
Qincheng's first-quarter financial report showed outstanding performance, with net profit attributable to the parent company reaching NT$1.335 billion, a 24.8% increase quarter-on-quarter and a doubling compared to the same period last year. Earnings per share reached NT$10.73, setting a new historical high and marking the first time the company earned more than one capital share in a single quarter. However, Qincheng's April revenue was NT$2.06 billion, a 4.6% year-on-year increase, but a 17.6% decrease from March. Compared to the year-on-year revenue growth rate of at least 40% in the first three months of this year, the momentum has slowed.
Chen Ya-nan specifically emphasized today that the slowdown in April revenue growth was mainly due to product iteration caused by the transition between new and old projects. The AI momentum remains strong, and Qincheng expects its operations this year to maintain an upward trend quarter by quarter.
Chen Ya-nan stated that this wave of AI is not a business cycle but a generational restructuring of the industry, with no bubble issue. The market competition is no longer just about cost, but about who is closer to the customer and supply chain resilience.
To this end, Qincheng is accelerating its localization strategy for manufacturing and operations. Its new NCT (New Product Introduction and Prototyping) plant in the US was officially completed and put into operation in mid-March. The Malaysia mass production base is expected to be operational in the third quarter; in addition, the mass production plant in Dallas, Texas, US, has signed a contract and started construction in May, and is expected to be gradually operational in the second half of 2027, which is expected to boost Qincheng's subsequent operational growth. (Edited by Huang Kuo-lun) 2026/05/08
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(Central News Agency reporter Tseng Jen-kai, Taipei, 8th) Qincheng, a major server chassis manufacturer, is actively entering the new cabinet market. Qincheng CEO Chen Ya-nan revealed today that the company has secured liquid cooling cabinet projects from two large North American CSPs (Cloud Service Providers). The goal is for the cabinet business to account for over 10% of this year's revenue, and future strategic collaborations or acquisitions are not ruled out.
Qincheng held an online investor conference today. Chen Ya-nan stated that AI is driving changes in data center architecture, shifting from a traditional "single machine" mindset to a "system" mindset. Consequently, Qincheng, which originally focused on server chassis, began entering the cabinet market last year to assist clients with system-level design.
Chen Ya-nan said that Qincheng started entering the cabinet market last year, initially mainly shipping components. This year, through cooperation with CSPs, SIs (System Integrators), and supply chain partners, they have gained project opportunities and have secured liquid cooling cabinet projects from two large US CSPs. The goal is for the cabinet business to challenge a revenue share of over 10% of the company's total revenue this year.
In addition, Qincheng stated that as the company newly enters the cabinet market, there are some areas that need to be strengthened, including client development and technical capabilities. Future strategic collaborations or acquisitions are not ruled out.
Qincheng's first-quarter financial report showed outstanding performance, with net profit attributable to the parent company reaching NT$1.335 billion, a 24.8% increase quarter-on-quarter and a doubling compared to the same period last year. Earnings per share reached NT$10.73, setting a new historical high and marking the first time the company earned more than one capital share in a single quarter. However, Qincheng's April revenue was NT$2.06 billion, a 4.6% year-on-year increase, but a 17.6% decrease from March. Compared to the year-on-year revenue growth rate of at least 40% in the first three months of this year, the momentum has slowed.
Chen Ya-nan specifically emphasized today that the slowdown in April revenue growth was mainly due to product iteration caused by the transition between new and old projects. The AI momentum remains strong, and Qincheng expects its operations this year to maintain an upward trend quarter by quarter.
Chen Ya-nan stated that this wave of AI is not a business cycle but a generational restructuring of the industry, with no bubble issue. The market competition is no longer just about cost, but about who is closer to the customer and supply chain resilience.
To this end, Qincheng is accelerating its localization strategy for manufacturing and operations. Its new NCT (New Product Introduction and Prototyping) plant in the US was officially completed and put into operation in mid-March. The Malaysia mass production base is expected to be operational in the third quarter; in addition, the mass production plant in Dallas, Texas, US, has signed a contract and started construction in May, and is expected to be gradually operational in the second half of 2027, which is expected to boost Qincheng's subsequent operational growth. (Edited by Huang Kuo-lun) 2026/05/08
Stand with facts, every sponsorship you make is the power to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
Text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.