New Performance Engine! Nearly 3 Tons of Every 10 Tons of Special Engineering Plastics Sold by Kingfa Sci. & Tech. Flow to the AI Industry

Amid the accelerating implementation of new quality productive forces and the booming development of emerging industries, AI computing power and embodied intelligent robots have become core engines driving industrial transformation, fueling explosive demand for supporting high-end specialty engineering plastics.

On May 18th, Jinfa Technology stated at its performance briefing that the company is seizing the development opportunities in emerging industries such as AI computing power and embodied robots. It is focusing on high-end specialty engineering plastics like PPA, LCP, PES, and PEI, and is specifically developing integrated solutions for new materials to accelerate its layout in cutting-edge fields and fully cultivate a new performance growth curve. With the explosive growth of downstream computing power and robotics industries, the company is simultaneously advancing the construction, commissioning, and expansion of high-end material production capacity, laying a solid foundation for the domestic high-end new materials to achieve import substitution.

At the application level of core products, Kingfa has achieved large-scale commercialization of key materials in the AI computing power sector, breaking foreign technology monopolies and strengthening the security of the domestic materials supply chain. To meet the demands of high-speed transmission and stable operation in AI servers, the company has independently developed ultra-thin halogen-free flame-retardant PPA and high-flow, low-warpage LCP. With excellent dielectric properties and low-loss characteristics, these materials meet the stringent standards for high-speed connectors. At the same time, Kingfa has launched a range of high-strength, low-noise PPA, LCP, PES, and PEI materials tailored to the requirements of ultra-high-speed server cooling fans for heat resistance, lightweight design, and fatigue resistance, providing critical support for the 24/7 uninterrupted operation of AI servers. These core products have now entered the supply chains of leading industry customers and achieved stable mass supply, becoming an important benchmark for domestically produced high-end new materials replacing imports.

Capacity construction and continuous expansion are the core foundation for Jinhua Technology to undertake explosive downstream demand and unleash performance potential. The company has established a capacity matrix for specialty engineering plastics covering all categories, including PPA, LCP, PES, and PEI, with the production schedule precisely matching the expansion speed of downstream industries. By the end of 2025, the company’s total production capacity for specialty engineering plastic synthetic resins will reach 39,000 tons per year, including 21,000 tons per year for high-temperature nylon (the core category of PPA); the annual production of 6,000 tons for the PES/PPSU facility will be fully operational; the existing capacity for LCP is 11,000 tons per year, with the first phase of a new 15,000 tons per year project successfully bringing 5,000 tons online; and the kiloton-level polyimide (PEI) project has been launched to fill the gap in high-temperature insulation materials for computing power and robotics.

To capture future market growth, Kingfa Sci. & Tech. is continuing to advance multiple rounds of capacity expansion and comprehensively build out its full-industry-chain layout. In the LCP segment, the company plans to construct a new industrial-scale facility with a capacity of 10,000 tons per year, which is expected to be gradually commissioned starting in the first quarter of 2027, bringing total capacity to over 25,000 tons per year. At the same time, an additional 10,000 tons per year of PPA high-temperature-resistant material capacity will be added to strengthen supply capabilities for the computing power and robotics sectors. Construction of a 50,000-ton-per-year specialty engineering plastics compounding and modification plant is progressing in an orderly manner, with the first-phase capacity of 15,000 tons per year expected to come online in the second quarter of 2026, enabling full-chain integration from raw material synthesis and compounding to customized application solutions, and precisely meeting the diversified needs of downstream customers.

From the perspective of business contribution, the company has already reaped phased results from its strategic positioning in these sectors. At present, sales of specialty engineering plastics related to the AI industry account for nearly 30% of its total specialty engineering plastics sales, making them a core growth driver for the high-end new materials segment. Materials related to embodied intelligent robots—such as lightweight, wear-resistant, and high-strength materials—currently account for a relatively low proportion and make a limited short-term contribution to performance. However, as the commercialization of humanoid robots accelerates, demand for core materials such as PPA, PEI, and LCP is expected to be rapidly unleashed, offering broad long-term growth potential.

Kingfa Science & Technology’s growth opportunities are rooted in the broader transformation and upgrading of China’s specialty engineering plastics industry. Driven by external trade frictions, China’s specialty engineering plastics sector has undergone more than a decade of determined efforts, achieving remarkable results in domestic substitution. The industry is now moving from import replacement toward technology leadership, with local companies gradually evolving from industry followers into global competitors. Demand in traditional electronics and electrical applications remains steady, while new sectors such as new energy vehicles, photovoltaic energy storage, AI computing power, and embodied intelligence are becoming the core sources of incremental growth for specialty engineering plastics.

The rapid expansion of the new energy sector continues to drive demand for specialty engineering plastics. In 2025, global renewable energy installations are expected to grow rapidly, with photovoltaics becoming the main driver. China’s new energy storage market has exceeded RMB 200 billion, while the penetration rate of new energy vehicles is approaching 50%, with the amount of engineering plastics used per vehicle far exceeding that of traditional fuel vehicles. The widespread adoption of high-voltage fast charging is accelerating the penetration of PPA, PPS, and LCP in applications such as electric powertrain systems, high-voltage connectors, and thermal management systems. Institutions forecast that by 2030, global renewable energy installations will double and the penetration rate of new energy vehicles will continue to rise, driving demand for specialty engineering plastics to 500,000–700,000 tons and pushing the market size beyond RMB 40–60 billion.

AI computing power and embodied intelligence are becoming the largest incremental blue ocean for specialty engineering plastics in the future. Global investment in AI computing power continues to rise, with related global development spending expected to reach USD 500 billion in 2026. The iterative upgrade of high-speed connectors will directly drive explosive demand for materials such as LCP and PPA. In China, the embodied intelligence industry is growing at an annual rate of over 50%, and during the 15th Five-Year Plan period it is expected to leap from a market worth tens of billions to hundreds of billions of yuan, with the global market size surpassing RMB 200 billion. Lightweight materials such as LCP, PPA, and PEEK are set to see substantial incremental growth.

Leveraging its technological strengths across a full range of product categories, continuously expanding capacity reserves, and integrated whole-industry-chain capabilities, Kingfa deeply aligns itself with the two golden tracks of AI computing power and embodied robotics. By using the domestic substitution of high-end advanced materials as a key driver, the company is upgrading its business from simple supporting supply to customized integrated solutions. As downstream emerging industries continue to surge and domestic substitution in the sector deepens, the company’s long-term growth ceiling continues to expand, positioning it to become a core global leader in the field of high-end specialty engineering plastics.