The Surging Demand for Transformers: Why Are They Crucial?

China’s transformer industry has emerged as a global hot commodity. With China exporting transformers worth a record-breaking 64.6 billion RMB in 2025, representing a staggering 36% increase from the previous year, the demand is evidently soaring. Prices have risen by over 60%, some even reaching an 80% surge. The criticality of transformers in powering various technologies is exponentially growing. Tech mogul Musk highlighted three factors limiting AI advancement: chips, power generation, and transformers. While chips and power are no longer bottlenecks, transformers are alarmingly scarce. Supply chain challenges are further exacerbated by delivery lead times exceeding 2 years, with large…