Kentec sees EMS, AI infrastructure as growth drivers

• By Meryl Kao / Staff reporter

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Kentec Inc (金運) sees electronics manufacturing services (EMS), thermal management and artificial intelligence (AI) infrastructure as major growth drivers ahead as it targets opportunities in AI data center construction, company president Asa Kuo (郭丁賀) said yesterday.

Thermal management and AI infrastructure revenue rose 165 percent year-on-year to about NT$168 million (US$5.18 million) in the first half of this year, while EMS revenue increased about 10 percent over the same period, Kuo said.

Kentec posted operating profit of about NT$1.1 million in the first half, reversing operating losses of NT$57.88 million a year earlier, he said.

Kentec Inc chairman Kevin Hsieh, third right, president Asa Kuo, third left, and other company executives pose for a photograph at a business event in Taipei yesterday.

Photo courtesy of Kentec Inc

The company expects robust demand for AI data center system integration and steady expansion in EMS business to sustain its growth momentum into next year, he said.

Containerized and modular data centers are an important area of development for Kentec, Kuo said.

The company has completed the 3D design of a 5 megawatt (MW) modular data center solution and is awaiting customer approval to move the project forward, he said.

The company has also visited a potential project site with a customer that is considering having Kentec build a 50MW data center, he said.

Kentec also supplies coolant distribution units (CDU), with products ranging from 12 kilowatts to 2.5MW to support high-density graphics processing unit (GPU) computing and large AI data centers, said Daniel Chen (陳敏郎), vice president of the firm’s Research and Development Center.

The company has completed development of its 2.5MW CDU, which is expected to enter mass production this month, while a new 3.5MW model is slated to begin validation next year, Chen said.

Meanwhile, the company plans to provide samples of liquid-cooling couplings and manifolds for customer validation next year, he said.

In Taiwan, Kentec is cooperating with green energy provider Apollo Power Co (阿波羅電力) on AI data center projects in several places, the company said.

Its international footprint includes Japan, North America and Southeast Asia.

Kenmec chairman Kevin Hsieh (謝明凱) said that he expects the company to become more international within three years.

Kentec, which is 71.59 percent-owned by factory automation and system integration provider Kenmec Mechanical Engineering Co (廣運機械), is set to debut on the Emerging Stock Board tomorrow.