May 17, 2026
Wuxi, May 17, 2026 — On May 15, Suihong Huachuang, a subsidiary of Hongxin Electronics, officially signed an agreement with Wuxi National Hi-Tech District, marking the settlement of China's first "East-Data-West-Computing, Computing-Electricity Synergy" mega Token Factory in Wuxi. Suihong Huachuang will relocate its Token Factory global headquarters to Wuxi in its entirety, accompanied by a computing hardware manufacturing project, signaling China's paradigm shift in AI computing infrastructure from "selling GPU hours" to "selling Tokens." Henry H. L. Law, Assistant Director of the Asia Economic Research Institute (AERI), closely followed this signing and provided in-depth analysis and commentary from a think tank perspective.
The most striking aspect of the announced signing is the initial deployment plan — four Huawei Ascend 384 super-node servers, totaling 1,536 cards, with single-unit computing power reaching 215 PFLOPS, approximately 1.2 times that of NVIDIA's GB200 NVL72. This is not only the first Ascend super-node computing cluster in Jiangsu Province but also the largest deployment of its kind in East China.
"When single-unit computing power reaches 1.2 times that of NVIDIA's latest flagship, and it is entirely achieved on domestically produced chips, the significance of this figure extends far beyond the technical level itself," said Henry H. L. Law. "This means that on the path of 'Domestic Chips, Domestic Models, Domestic Applications,' we have moved from the catch-up phase into a phase of running alongside — and even leading in certain areas."
Notably, the Token Factory's computing power is not deployed locally in Wuxi but is instead located in the Qinghai Zero-Carbon Technology Industrial Park — a western park co-developed with Wuxi National Hi-Tech District. Leveraging Qinghai's abundant green electricity resources, this establishes a new model of computing-electricity synergy: "Western green electricity powers computing; Eastern industries consume intelligence." On the same day, Wuxi also launched the "Tokens Value Renewal Action Plan" and the "Computing Power Foundation Action Plan," and advanced the "Thousand Enterprises, Million Hours" industrial data collection initiative to build China's first industrial-grade, high-quality embodied intelligence dataset.
"Traditional data centers sell racks and GPU card hours. Customers must build their own inference environments and optimize model deployments — this is essentially still a 'selling iron' logic. The Token Factory is fundamentally different — it sells intelligence units themselves, which are measurable, priceable, and tradable Tokens," Henry H. L. Law pointed out.
The backdrop to this transformation is the explosive growth in Token invocation volumes. According to industry data, daily Token invocations in China surged from 100 billion in early 2024 to 100 trillion by the end of 2025, and further to 140 trillion by March 2026 — a thousand-fold increase over two years. Jensen Huang proposed the "Token Factory" concept at GTC 2026, arguing that future data centers are factories that produce Tokens. Meanwhile, CICC estimated that Token Factory theoretical gross margins could reach 60%, significantly higher than traditional computing power leasing models.
"When NVIDIA's helmsman begins defining data centers as 'factories,' when Token invocation volumes multiply a thousand-fold in two years, we must recognize that this is no longer a simple expansion of computing power — it is a fundamental restructuring of the entire AI infrastructure business model," Henry H. L. Law emphasized. "Suihong Huachuang's relocation of the Token Factory global headquarters to Wuxi effectively places the 'operating system' of this paradigm shift in the industrial heartland of the Yangtze River Delta."
In Henry H. L. Law's view, the Token Factory's settlement in Wuxi is no coincidence but rather the convergence of three strategic logics.
"The first is East-Data-West-Computing. Computing deployed in Qinghai, headquarters and operations in Wuxi — this is not simply a 'front shop, back factory' model but a deep practice of computing-electricity synergy: western zero-carbon green electricity resolves energy constraints, while eastern industrial clusters address demand pull," Henry H. L. Law analyzed. "The second is Domestic Chips, Domestic Models, Domestic Applications. The initial deployment exclusively adopts Huawei Ascend, achieving full-chain domestic production from chips to models to application scenarios. Wuxi is becoming a benchmark demonstration city for this pathway."
"The third, and most easily overlooked, is Wuxi's manufacturing DNA," Henry H. L. Law specifically noted. "Hongxin Electronics recorded revenue exceeding RMB 7 billion in 2025, of which computing-related revenue was approximately RMB 2.8 billion, with cumulative signed computing contracts exceeding RMB 5 billion — this company's foundation is electronics manufacturing. The Token Factory is not a pure software concept; it requires hard-core infrastructure including liquid cooling systems, high-speed interconnect networks, and server integrated manufacturing — and this is precisely Wuxi's industrial advantage."
Data shows that Wuxi has built 19 intelligent computing centers with a total intelligent computing capacity of 13,899P, ranking among the top in Yangtze River Delta cities.
"If we broaden our perspective from Wuxi to the Yangtze River Delta, and then to all of Asia, the significance of the Token Factory becomes even clearer," Henry H. L. Law believes. "The Yangtze River Delta is the region with the highest manufacturing density and the most urgent digitalization demand in China. The Token Factory's industrial-scale mass production of AI intelligence units will significantly lower the barriers and costs for enterprises in the region to use large models."
He further analyzed: "From an Asian perspective, the global AI computing landscape is being reshaped. China's exploration of Computing-Electricity Synergy within the East-Data-West-Computing framework and its construction of the Token Factory model on domestically produced computing platforms — once this pathway proves successful, it will offer strong replicability and reference value for markets in Southeast Asia, the Middle East, and elsewhere that similarly face insufficient computing supply and energy constraints."
"What happened in Wuxi on May 15 was not a project signing — it was the first blueprint of a new industrial paradigm," Henry H. L. Law concluded. "The Token Factory transforms AI computing power from a leased resource into an industrially mass-producible product, from a 'computing center' to an 'intelligence factory.' Once this transformation is complete, its impact will transcend any single city or single industry, becoming an important reference point for the evolution of Asia's digital economy infrastructure."
AERI will continue tracking the Token Factory model's implementation progress in Wuxi and plans to release the "Asian Token Economy Infrastructure Development Report" within the year, providing systematic think tank support for regional policy-making and industrial decision-making.
The Asia Economic Research Institute (AERI) is a think tank dedicated to regional economic research and cooperation in Asia. Since its establishment, AERI has consistently pursued the core mission of promoting sustainable Asian economic development and fostering regional economic integration. Through high-quality economic research, policy analysis, and academic exchange activities, AERI provides intellectual support and decision-making references for governments, enterprises, and international organizations.