DQ commits RMB 2.1 billion initially to build a Kunshan facility producing energy storage and power solutions for AI infrastructure.
Daqo New Energy Corp. (NYSE:DQ) will invest RMB 2.1 billion in the first phase of a new manufacturing base in Kunshan, targeting energy solutions for AI data centers. The project aims to produce energy storage systems, solid-state transformers, and batteries, with a total expected investment of RMB 6 billion.
The move diversifies Daqo beyond its core polysilicon business, leveraging technical expertise to address rising demand for specialized energy infrastructure driven by global AI growth. The company supplies polysilicon for solar products but seeks new revenue streams amid the energy transition.
This expansion reflects Daqo’s strategy to capitalize on the AI-driven energy market, though analysts note other AI stocks may offer higher upside with lower risk.