Automotive Supply Chain Expands into the AI Domain

The explosive growth of AI computing power has triggered a surge in demand for advanced thermal management solutions. Leveraging their strong foundation in precision manufacturing, Taiwan’s automotive component suppliers are accelerating cross-domain upgrades — shifting from automotive cooling systems and precision metal parts to thermal solutions for AI servers, smartphones, and other electronics.

Traditional automotive suppliers such as Jimo, Precision, Yongchang, Hwa Da, and IKKA have recently made inroads into the AI sector, steadily securing new orders and shipments. They have quickly emerged as some of the most promising dark horses in Taiwan’s industrial landscape this year.

Industry experts highlight that automotive components possess inherent advantages in high-precision machining, thermal structure design, and high-reliability material processing—technological strengths that align closely with the requirements of AI cooling systems. Moreover, most production lines already comply with automotive-grade standards, allowing a smoother transformation compared with other sectors.

Jimo revealed that the core principles, manufacturing processes, and even mold development for AI server cooling units are nearly identical to those of automotive water-cooled radiators. Existing automotive molds can often be repurposed with only minor design modifications. This compatibility has enabled Jimo to transition into the AI field without the typical “pain points” of industrial transformation. Thanks to its mature production lines and high-volume stability, Jimo quickly gained traction among European and American clients and has recently received orders for AI server and data-center cooling modules, marking it as one of Taiwan’s most successful transformation cases.

Meanwhile, IKKA leveraged its network of Tier-1 automotive clients—many of whom are also investing in robotics—to participate early in the development of next-generation robotics and automation components. By collaborating with several robotics and automation companies under the Nengrate Group, IKKA is building a dynamic “automotive + robotics” innovation chain that extends its technological reach into emerging smart industries.