Nidec growth plan shifts from China EV parts to AI server coolers
Feb 09, 2024 - asia.nikkei.com
Japanese motor supplier Nidec is shifting its growth strategy away from electric vehicle components in China, due to intense competition, and is instead focusing on water cooling systems for data centers that use artificial intelligence semiconductors. The company plans to reduce investments in areas where it is difficult to guarantee profits and concentrate on rapidly expanding markets.
Nidec sees advanced cooling capabilities as a key requirement for data centers using AI semiconductors. The company is also looking to increase its investments in India and Africa, as it sees these regions as promising new business areas.
Key takeaways:
Japanese motor supplier Nidec is shifting its growth strategy away from electric vehicle components in China.
The company plans to focus on water cooling systems for data centers that use artificial intelligence semiconductors.
Nidec aims to curb investments in fields where tough competition makes it difficult to count on profits.
Instead, the company will focus on a rapidly expanding market.
