TAIPEI — Taiwan’s ACES Electronics is broadening its role in the artificial-intelligence boom, moving beyond high-speed connectors for servers and into the power infrastructure needed to keep AI systems running.
The company recently entered the supply chain of U.S.-based Bloom Energy, supplying high-power and high-voltage cable assemblies for its energy systems. According to Taiwan News, shipments began in the second quarter, with orders expected to continue into 2027 as Bloom expands its power-generation capacity.
The move gives ACES exposure to two increasingly important parts of the AI infrastructure chain: computing connectivity and power delivery.
AI Already Accounts for 20% of Revenue
ACES reported second-quarter revenue of approximately NT$3.35 billion, up 19% from the previous quarter and 20% from a year earlier.
At the same time, AI-related products accounted for 20% of revenue in the second quarter, compared with 10% in 2025 and 4% in 2024, according to company presentation materials.
ACES said it expects AI-related revenue to continue increasing during the second half of 2026, supported by both its computing and power businesses.
The company’s latest investor materials also indicate that AI-related revenue could reach 38% of total revenue in the fourth quarter, although this is a company outlook rather than a guaranteed result.
Bloom Energy Opens a New Growth Avenue
ACES’ Bloom Energy business represents a significant change in the company’s AI strategy.
Rather than supplying only components that move data inside AI servers, ACES is now supplying cables used in energy systems supporting power generation and distribution.
The company says it is providing several types of cables for Bloom Energy systems, including high-temperature cables, power-conditioning-system cables and system cables.
ACES reported first-half shipments related to the Bloom Energy business of about NT$200 million. It expects second-half shipments to account for more than 10% of overall revenue, with order visibility extending into June-August 2027.
Bloom Energy is targeting more than 1.5 gigawatts of power-generation capacity in 2026, with its target rising to more than 3.5 GW in 2027, according to ACES’ investor materials.
Taiwan News reported that ACES expects its Bloom-related business to generate about NT$1 billion this year and potentially reach NT$3 billion in 2027.
The Other AI Engine: High-Speed Connectivity
Power is only half of ACES’ AI expansion.
The company is also increasing its supply of high-speed connectors and transmission cables used in AI servers.
ACES said its connectors have been adopted in platforms using customized chips developed by cloud-service providers, including systems associated with Amazon Web Services and Meta, according to Taiwan News.
The company shipped about 12 million high-speed connectors during the first half of 2026 and expects approximately 21 million units in the second half, bringing its full-year estimate to around 33 million.
ACES is targeting more than 50 million high-speed connectors in 2027.
Its investor presentation also says high-speed transmission cables began trial production in the second quarter and are expected to expand gradually, potentially becoming one of the company’s major server-related product lines.
Stronger Quarterly Performance
The AI-related expansion coincided with a stronger second quarter for ACES.
Revenue reached NT$3.35 billion, while gross margin was 25.6% and operating margin was 7.3%. Net income reached approximately NT$201 million, according to the company’s earnings-call materials.
ACES said the improvement was helped by higher shipments of AI-server products and a more favorable product mix.
However, not every part of the business is accelerating at the same pace. The company said automotive demand has been slower, while notebook and consumer-electronics customers have remained more cautious amid component shortages and higher supply-chain costs.
Taiwan’s AI Supply Chain Is Moving Beyond Chips
ACES’ strategy reflects a broader development in the AI hardware industry: the infrastructure required for AI data centers extends well beyond processors.
High-speed connectivity, power conversion, cables, cooling and electricity generation are increasingly important as AI servers become more power-intensive.
For ACES, the opportunity is therefore no longer limited to the number of connectors installed inside a server. Its expansion into energy-system cabling gives the company another potential source of AI-related revenue.
The company is positioning these two businesses—AI computing and AI power—as complementary growth engines.
But the projections remain forward-looking. Actual revenue will depend on customer orders, production schedules, AI-server demand and Bloom Energy’s own deployment plans.
