Entering the mid-2020s, the combined demands of global AI computing power construction, energy transition, and power grid upgrades propelled transformers into critical equipment, leading to a surge in market demand. China's transformer industry, with its complete industrial chain, efficient production capacity, and high-quality products, occupies a significant position in the international market, accounting for approximately 60% of global production capacity.
For example, in 2025, China's total transformer exports reached 64.6 billion yuan, a year-on-year increase of nearly 36%. Many factories were operating at full capacity, with some orders for data centers already booked until the end of 2027. AI computing clusters have extremely high requirements for power quality, becoming a core engine for industry growth and driving the transformer industry towards high-end development. Against this backdrop, high-frequency transformers, as a key technology for adapting to new energy integration and meeting the demand for high-stability power supply, are becoming a focus of industry R&D and market expansion.
In June 2026, as a demonstration project of the National Key R&D Program project "Development of Low-Loss High-Frequency Soft Magnetic Materials and Megavolt-ampere-Level High-Frequency Transformers," the world's first 10 kV flexible switchgear based on a single megavolt-ampere nanocrystalline high-frequency transformer commenced construction in Qingpu, Shanghai. This project marks a significant milestone in my country's technological upgrading of high-capacity power electronic equipment, encompassing materials, devices, and equipment, reaching international advanced levels. It also aims to promote flexible access and efficient consumption of new energy sources, serving energy transition and the "dual carbon" goal.
