A-share computing power leader to build a large-scale “Token Factory” in Wuxi

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Wuxi will establish a large-scale “Token Factory.”

According to Wuxi Daily, on May 15th, Hongxin Electronics, the leading domestic AI computing power enterprise, in cooperation with Wuxi High-Tech Zone, will build the province’s first Huawei Ascend 384 super-node computing cluster, which has been officially signed and settled in Wuxi.

At the same time, using the Huawei super-node computing cluster as the initial infrastructure, Hongxin Electronics will establish a large-scale “Token Factory” in Wuxi. This will become a new model for large-scale, high-performance “national chips and national models” computing clusters.

The report states that the “Token Factory” settled in Wuxi High-Tech Zone will initially deploy 4 Huawei Ascend 384 super-node servers, which is the main strength of the “Token Factory.” “Each set of super-node servers has 384-card computing scale, connecting 4 groups of 384 GPUs into a super cluster.” It is reported that this scale is among the largest among domestic “Token Factories” aimed at the market.

According to Hongxin Electronics, this signing marks a key step for Suihong Huachuang in the localization layout of AI computing power, and more importantly, represents a major breakthrough in Wuxi’s deep implementation of the national “East Data, West Computing” strategy and construction of a domestic computing power ecosystem. As the first large-scale Token Factory integrating “East Data, West Computing” and computing-power-electricity fusion, settling in Wuxi will inject new momentum into the high-quality development of the Yangtze River Delta AI industry, and become a major attempt and breakthrough in the national “National Chip, National Model, National Use” strategy.

“Token is a unit of measurement for AI, which can be understood as a ‘word unit’; a Token Factory is an industrial facility dedicated to producing basic AI units—Tokens.” Li Qiang, Chairman of Hongxin Electronics, explained, “A Token Factory contains computing infrastructure, model and algorithm layers, dispatch and distribution MaaS platform, forming an intelligent production system for efficient production, dispatch, and delivery of Tokens.”

Today, there is another important news in Wuxi: Korean SK Hynix came to Wuxi for deeper cooperation. On May 15th, Du Xiaogang, Secretary of Wuxi Municipal Party Committee, met with SK Hynix’s Chief Strategy Officer and Vice President Kim Dongkwe, who was invited to participate in the Wuxi Health and Quality Development Conference. The two sides held in-depth exchanges around implementing the deep cooperation consensus reached during major leaders’ meetings between Jiangsu Provincial leaders and SK Group’s Chairman, and jointly expanding the field of life and health.

Wuxi proceeds with two supporting action plans simultaneously

Recently, Wuxi also announced two key action plans.

First, to reshape the Token value circulation system and build a new industrial collaboration ecosystem, Wuxi Data Bureau, Wuxi Industry and Information Technology Bureau, China Mobile Wuxi Branch, Wuxi Data Group, and Wuxi High-Tech Zone OPC Community representatives jointly launched the “Tokens Value Renewal Action Plan.”

Second, to light up the cornerstone of Wuxi’s intelligent computing power and strengthen the Token application ecosystem foundation, the Wuxi Data Bureau and Wuxi Industry and Information Technology Bureau once again joined hands with China Mobile Wuxi Branch, Wuxi Data Group, Wuxi Shanghang Data Co., Ltd., and Cloud Workshop Technology Holdings Co., Ltd. to officially launch the “Computing Power Foundation Action Plan.”

The “Computing Power Version of State Grid” is coming

Hongxin Electronics’ entry coincides with a window period of intensive computing power policies. According to Xinhua News Agency, in March this year, China’s daily Token call volume exceeded 140 trillion, up more than a thousand times from the beginning of 2024, with AI model usage costs rising continuously.

This month, the State Council executive meeting mentioned, “Strengthen the planning and construction of water grid, new power grid, computing power grid, new-generation communication grid, urban underground pipeline grid, logistics grid, etc.,” placing the computing power grid on the same level of importance as water and electricity public infrastructure. Similarly, the same statement was made at last month's CPC Central Political Bureau meeting. Previously, the “Fifteen-Five” Plan also specially mentioned: “To build a multi-level computing power facility system and a unified national computing power grid.” Regarding financial budget, the National Development and Reform Commission stated that this year’s investment in the “Six Networks” and related fields is expected to exceed 7 trillion yuan.

Simply put, the computing power grid is like a “computing-power version of State Grid.” We don't need each household to install its own generator, because the electric grid is built and dispatched uniformly. Similarly, the computing power grid connects data centers and supercomputing centers across the country into one unified network. When needed, we can buy computing power directly from the network, pay as needed, and costs naturally decrease.

In the future, we may enjoy “computing power coupons,” or convenient services similar to water, electricity, or mobile data packages.

Notably, on May 17th, China Telecom launched a series of trial commercial Token packages.

Among them, for developers and micro, small, and medium-sized enterprise clients, it provides “Token + connection + security” integrated services, launches three Token Plans, and offers optional broadband upload speed boost and security protection packages. For individual and family clients, the same “Token + connection + security” integrated services are provided, with three Token Plans and two optional packages. For Token ecosystem partners, China Telecom will soon launch Tianyi Token coins and Token rights.

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