In the wake of deep adjustments in global industrial chains and China’s push for the transformation and upgrading of its manufacturing sector, industries such as new energy vehicles, AI computing power, and 5G communications are experiencing explosive growth. This, in turn, is driving the connector industry into a new round of technological iteration and innovation.

Facing this strategic opportunity, global connector giants such as TE Connectivity, Amphenol, and Aptiv are shifting from the traditional “market for technology” model and adopting a comprehensive, localized strategy. They are focusing on creating a full value chain of R&D, manufacturing, and supply chain collaboration, attempting to elevate China from being the “largest market” to a “global innovation hub.” As a leader in the global connector industry, TE Connectivity sees China as a testing ground for its technological implementation and model innovation.

TE Connectivity: A Localized Approach in New Energy and High-End Industrial Fields

In cities like Kunshan and Nantong, TE Connectivity has invested heavily in building production bases for new energy connectors. The Kunshan facility, with an annual production capacity of 2 billion units in its first phase, focuses on high-voltage connectors and smart wiring harnesses, directly serving the 800V high-voltage platform needs of leading automotive manufacturers like BYD and Tesla.

The Yangtze River Delta cluster, centered around Kunshan and Nantong, focuses on the new energy vehicle (NEV), energy storage, and high-end industrial sectors. Meanwhile, the Pearl River Delta cluster, including Shenzhen and Dongguan, focuses on consumer electronics, communication devices, and serves the global smart hardware industry chain.

Amphenol’s Domination in AI Server Connectors

The rapid growth of AI data centers has seen Amphenol capitalize on its monopoly in 224G high-speed copper cable connectors, deeply integrating with NVIDIA’s GB200 superchips to capture more than 50% of the AI server connector market in China. Their strategic focus on the AI computing power sector has placed them at the heart of this industry’s infrastructure.

Aptiv: Localization and Innovation for Smart Driving

Aptiv has made significant strides in localizing its operations in China, establishing high-voltage connector bases in Wuhan and an intelligent vehicle R&D center in Changshu. These facilities have not only achieved over 80% localization in high-voltage connectors but have also launched the world’s first cross-domain integrated computing platform, developed by a Chinese team, integrating six key functions, including intelligent driving and cockpit control, into a single chip.

In a move with strategic implications, Aptiv has also invested 570 million yuan to acquire a controlling stake in MAXIEYE, a Chinese autonomous driving company, extending its localization strategy from manufacturing to algorithm development. This acquisition positions Aptiv to influence the L2+ to L4 autonomous driving race, aiming to shape industry standards.

Rosenberger’s Expansion: Moving Beyond One-Way Technology Transfer

Rosenberger is breaking away from the traditional “one-way technology transfer” model. Based in Shanghai and linked with production facilities in Kunshan and Changzhou, Rosenberger is building a cluster of production sites focused on new energy vehicles and communication industries. Their Dongguan plant supports the South China market, strengthening their service capabilities for consumer electronics and communication device customers.

Phoenix Contact: Localizing to the Next Level

Phoenix Contact has entered the 4.0 phase of localization, exemplified by its Nanjing Super Factory, which achieves a fully localized value chain from R&D to delivery through a 100% local team. Their Li Shui charging gun base, with an annual production capacity of 1 million sets, not only serves Chinese automakers but also adapts to European and American charging standards through modular design, becoming a critical component in the global new energy infrastructure.

Molex: Focused on Automotive and Data Centers

Molex has focused its Chinese operations on the automotive, data center, and industrial automation sectors, establishing a wiring harness factory in Dongguan and a radio-frequency wiring harness factory in Zhenjiang. Their 224G liquid-cooling connector technology, which has been partially integrated into the OCP open-source standards, is helping drive the adoption of high-speed interconnects in AI data centers.

Localized Innovation in High-Growth Sectors

In conclusion, foreign companies are prioritizing localized R&D and high-end manufacturing in China, focusing on high-growth sectors like new energy, AI data centers, and intelligent driving. Through technological monopolies and strategic supply chain partnerships, they are consolidating their advantages and building a solid foundation for the future.

As we analyze the three key applications where these foreign giants are focusing—automotive, communications, and energy storage—it’s evident that China’s role as both a manufacturing hub and an innovation center is increasingly becoming indispensable to the global connector industry’s development.