(Yicai) Oct. 16 -- Hongxin Electronics Technology Group, a Chinese maker of flexible printed circuit boards, plans to participate in the construction and operation of a CNY1 billion (USD139.3 million) artificial intelligence computing power center.

Hongxin’s unit Gansu Suihong AI Tech signed a deal with Zhongjing Power Investment Group to invest in and build an AI computing power center in Tianshui, a city rich in new energy resources in western China’s Gansu province, the Xiamen-based parent company announced late yesterday.

Suihong AI will be responsible for the provision of high-end computing power servers and operating works, while Zhongjing will be responsible for the project’s investment, Hongxin pointed out.

The new AI computing power center will rent its servers to AI technology companies, providing them with an efficient and cost-effective way to train AI models, Hongxin said, without mentioning the scale of the operation of the center.

The center will mainly use Hongxin’s AI servers, which will be equipped with Nvidia’s AI computing power chips, the company added, noting that some of the servers will use chips from Chinese companies as well, depending on the project’s actual needs.

This was the fifth AI computing power center Hongxin announced it would partner on in the past month or so. In early September, the firm joined hands with China Mobile and China Telecom, planning to invest in and build two centers in Qingyang, a city rich in green energy resources in Gansu province, respectively. The two other centers will be built in Xiamen and Changsha.

Hongxin’s shares [SHE: 300657] closed 3 percent down at CNY18.83 (USD2.62) in Shenzhen today, after jumping as much as 3 percent in morning trading. The Shenzhen Stock Exchange’s ChiNext Board Index closed 2 percent down today, the lowest since April 2020.

Editor: Futura Costaglione