Driven by the surge in generative AI, China's top three power supply unit (PSU) makers by revenue, Shenzhen Honor Electronic, Great Wall Power Technology, and Shenzhen Megmeet Electrical, are accelerating their expansion into the server PSU market.
Honor Electronic and Great Wall Power Technology are aligning their 2025 roadmaps with third-generation semiconductor adoption, while Megmeet is pursuing a different strategy by focusing on silicon-based IGBTs, reducing procurement costs for rare-earth permanent-magnet components, advancing Power Rack solutions, and broadening its product portfolio.
Although all three Chinese companies are targeting the relatively higher-margin server PSU segment, a comparison of their PSU gross margins from 2019 to 2024 with those of leading Taiwanese PSU vendors, such as Delta Electronics and Lite-On Technology, shows that the Chinese vendors' margin growth has been less stable.
Chart 1: Evolution of Honor's global PSU manufacturing plants
Chart 2: Overall revenues and server PSU revenues of Honor, 2021-2024 (CNYm)
Chart 3: Honor upstream and downstream partners of PSU business
Chart 5: Evolution of Great Wall Power's global PSU manufacturing plants
Chart 6: Overall revenues and server PSU revenues of Great Wall Power, 2021-2024 (CNYm)
Chart 7: Great Wall Power upstream and downstream partners of PSU business
Chart 8: Great Wall Power server PSU product line deployment
Chart 9: Evolution of Megmeet's global PSU manufacturing plants
Chart 10: Overall revenues and server PSU revenues of Megmeet, 2021-2024 (CNYm)
Chart 11: Megmeet upstream and downstream partners of PSU business
Chart 13: Three players' deployment of PSU, energy and non-PSU businesses
Chart 14: PSU business gross margin of major players in China and Taiwan, 2019-2024
