A-share computing power leader will build a large-scale "Token Factory" in Wuxi

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

According to Wuxi Daily, on May 15, the province’s first Huawei Ascend 384 super-node computing cluster built by domestic AI computing power leader Hongxin Electronics together with Wuxi High-tech Zone was signed and settled in Wuxi.

At the same time, with 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 benchmark model for scaled, high-performance “national chips and national models” computing clusters.

The report says that for the “Token Factory” to be implemented in Wuxi High-tech Zone, the first batch will deploy 4 Huawei Ascend 384 super-node servers—this is the “Token Factory’s” strongest backing. “Each super-node server has a computing power equivalent to 384 cards; connecting four 384-card GPUs into a supercluster.” It is understood that this scale ranks among the very best among market-facing “Token Factories” in China at present.

Hongxin Electronics stated that this signing marks a crucial step forward for Suihong Huachuang’s layout of domestic AI computing power localization, and also signifies an important breakthrough for Wuxi in deeply implementing the national “east data, west computing” strategy on the ground and building a domestic computing power ecosystem. As the first large-scale Token Factory integrating “east data, west computing” and power-data integration, this project will be laid out in Wuxi, injecting new momentum into the high-quality development of the AI industry in the Yangtze River Delta, and becoming a major attempt and breakthrough in implementing the national strategy of “national chips, national models, and national use.”

“Token is the unit of measurement for AI. It can be understood as a ‘token.’ A Token Factory is industrialized production infrastructure dedicated to producing the basic units generated by AI—Tokens,” explained Li Qiang, Chairman of Hongxin Electronics. “Within the ‘Token Factory,’ there are computing infrastructure, model and algorithm layers, and a MaaS platform for scheduling and distribution systems, forming an intelligent production system that efficiently produces, schedules, and delivers Tokens.”

Today, another important piece of news in Wuxi is that SK Hynix of South Korea is coming to Wuxi to deepen cooperation. On May 15, Wuxi Party Secretary Du Xiaogang held talks with SK Hynix’s Chief Strategy Officer and Vice President Kim Dong-kyu and his delegation, who were invited to attend the Wuxi High-Quality Development Conference for Health and Wellness. The two sides had in-depth exchanges around the deep cooperation consensus reached when senior leaders of Jiangsu Province met with the Chairman of SK Group, and also discussed jointly expanding into the life and health sector.

Wuxi is advancing two supporting action plans at the same time

Recently, Wuxi has also released two key action plans.

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

Second, to light up Wuxi’s foundation of intelligent computing power and solidify the base of the Token application ecosystem, the Wuxi Data Bureau and the Wuxi Industry and Information Technology Bureau again teamed up with China Mobile Wuxi Branch, Wuxi Data Group, Wuxi Shanghang Data Co., Ltd., and YunGongChang Technology Holdings Co., Ltd. to officially launch the “Computing Power Foundation Action Plan.”

“The power grid for computing power” is coming

Hongxin Electronics’ move comes at a time when computing power policies are being intensively strengthened. According to Xinhua News Agency, in March this year, China’s daily Token invocation volume exceeded 1.4 quadrillion (140 trillion). Compared with the beginning of 2024, it increased by more than 1,000 times, and the cost of using AI models has continued to rise.

This month, a State Council executive meeting mentioned the need to “strengthen the planning and construction of water networks, new power grids, computing networks, next-generation communication networks, urban underground pipeline networks, logistics networks, and so on,” placing computing networks and public infrastructure such as water and electricity at the same level of importance. At the same time, the same wording was also mentioned in the Political Bureau meeting of the Central Committee of the Communist Party of China last month. Previously, the “14th Five-Year Plan” also included a specific statement: “Build a multi-level computing infrastructure system and a nationwide integrated computing network.” Regarding funding, the National Development and Reform Commission said that this year, the total investment in the “Six Networks” and related fields is expected to exceed 7 trillion yuan.

In simple terms, a computing network is like a “power grid for computing power.” We don’t need every household to install generators, because the large power grid is built and allocated uniformly. Similarly, a computing network connects data centers and supercomputing centers across the country into one network and provides unified scheduling. When needed, we can directly “buy computing power” on the computing network and pay as we use it—so costs naturally come down.

In the future, we may be able to enjoy conveniences similar to “computing power vouchers,” or just like using packages for water, electricity, and data.

It is worth noting that on May 17, China Telecom launched a series of trial commercial Token packages.

Among them, for developer and small-to-micro enterprise customers, it provides an integrated “Token + connectivity + security” service, offering three tiers of Token Plan and two optional package services: a broadband upload speed-up pack and a security protection pack. For individual and home customers, it provides an integrated “Token + connectivity + security” service, offering three tiers of Token Plan and two optional package services: a broadband upload speed-up pack and a security protection pack. For Token ecosystem partners, China Telecom is set to launch Tianyi Token Coins and Token benefits.

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