Summary of Key Points
Dongguan has recently introduced policies specifically to support the AI server industry, with the goal of achieving a total output value of 500 billion yuan for the entire server industry chain by 2030. To achieve this objective, Dongguan is focusing on developing the "Computing Power Industry Island" as a core pillar, providing comprehensive support to enterprises in areas such as land, funding, industrial chain infrastructure, and talent. Currently, Dongguan accounts for one-tenth of the national server production volume, with 95% of the components being supplied locally. Given that Guangdong is already the largest server manufacturing province in China, Dongguan aims to become a global hub for advanced computing hardware.
Goal: Achieve a 500 Billion Yuan Server Industry by 2030
Dongguan's goal is clear: it wants to generate a total output value of 500 billion yuan from the server industry chain by 2030. The strategy includes:
1. Cultivating leading enterprises—1-2 companies with annual revenues in the hundreds of billions (such as Huawei and Foxconn), 3-5 key companies with annual revenues in the tens of billions, and a group of smaller, specialized firms in niche areas.
2. Covering the entire industrial chain: from core components (chips, PCB boards) to complete machine manufacturing, system integration, computing power operations, and industry applications.
To achieve this goal, the government has identified seven key areas for development (such as complete machine manufacturing, chip packaging and testing, liquid cooling technology, high-end PCBs), and has implemented corresponding support measures, including:
- A 20 billion yuan AI industry fund to provide financial assistance to companies.
- Allocating tens of thousands of acres of industrial land.
- Attracting and nurturing top-tier talent.
The Core Pillar: Computing Power Industry Island—a Comprehensive Platform for Enterprises
Dongguan has specifically designed the "Computing Power Industry Island" as the central hub for reaching its 500 billion yuan goal. This island is not an isolated entity; it integrates with other regions such as Songshan Lake (chip research and development), Binhai Bay (intelligent computing research and development), and Longfeng Area (advanced packaging and testing) to form a multi-functional network.
The industrial island is well-equipped with:
- Nearly 5,000 acres of specialized manufacturing facilities for companies that require large-scale production, designed to meet the high demands of the computing power industry (e.g., capable of supporting heavy equipment and including areas for liquid cooling tests).
- 900,000 square meters of incubation spaces for startups, equipped with shared laboratories and computing power testing facilities, eliminating the need to purchase expensive equipment.
- Reservations of 300-500 acres of land for companies to build headquarters or integrated factories.
- The land can be divided into smaller plots (40-500 acres) to accommodate companies of various sizes.
Dongguan plans to invest 100 billion yuan over the next five years in developing this island, demonstrating its commitment to this initiative.
Funding: A Solid Foundation for Enterprise Growth
Funding is a critical factor for enterprise development, and Dongguan has made significant investments:
- A 20 billion yuan AI industry fund that prioritizes support for companies on the island, offering equity investments, equipment leasing (no upfront payment required), and assistance with mergers and acquisitions.
- A 5 billion yuan special fiscal grant, provided annually for five years, with an additional 500 million yuan designated for pilot projects that combine grants with investment. This approach not only helps companies finance their growth but also benefits the government.
- Another 100 billion yuan will be invested over the next five years in infrastructure development on the island, ensuring that it is ready for use by enterprises.
Dongguan's Strong Foundation
Dongguan has a solid foundation for developing this industry:
- Leading Production Volume: In 2025, Dongguan produced nearly 600,000 servers, accounting for one in every ten servers manufactured in China.
- Comprehensive Industrial Chain: 95% of the components are supplied locally, significantly reducing the time required for research and development, prototyping, and mass production.
- Strong Supporting Facilities: Dongguan is a global leader in PCB drill bits and high-speed copper-clad boards, with local companies in liquid cooling and connectors already supplying major players in the computing power industry (such as NVIDIA and Huawei).
These strengths give Dongguan the confidence to expand and strengthen its server industry.
The Support of Guangdong
The success of Dongguan's policies is also supported by Guangdong's broader environment:
- Largest Server Manufacturing Province: In 2025, Guangdong produced 2.94 million servers, accounting for nearly half of the national total (49.3%), with leading companies like Huawei and Foxconn.
- Diverse Application Scenarios: Guangdong has ten trillion-dollar industrial clusters in sectors such as home appliances, automobiles, and electronics, as well as modern service industries like government services, finance, and healthcare, providing a vast market for AI servers.
- Positive Future Trends: In the short term, demand for mid-to-low-end AI servers is expected to grow steadily, and the share of domestically produced chips and complete machines is expected to increase. In the long term, competition will shift towards integrated services that combine hardware with models and solutions, a trend that Guangdong is well-positioned to embrace.
In summary, Dongguan's policies are well-aligned with current trends and opportunities, with clear goals, specific support measures, a strong industrial foundation, and the backing of Guangdong's large market and ecosystem. The city aims to seize a leading position in the AI server industry.