1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

With the rapid development of information technology, cloud computing and supercomputing have become key forces driving technological progress and industrial upgrading. In response to the growing computing demand, the Sihe Cloud Computing Supercomputing Center Project emerges. This project is committed to building a comprehensive supercomputing center that integrates high-performance computing, data storage, cloud computing services, and other functions, aiming to provide powerful computing support for multiple fields such as scientific research, education, and enterprises.

1.1.2 Market prospect

(1) Current situation of the cloud computing and supercomputing market

Current situation of the cloud computing market:

In recent years, with the rapid advancement of artificial intelligence technology, domestic products such as databases, big data, proprietary clouds, and operating systems have been increasingly applied in vertical industries, especially in key infrastructure fields such as government affairs, finance, transportation, and education, opening up new market opportunities for China’s cloud computing vendors. In 2023, the size of China’s cloud computing market reached 616.5 billion yuan, a year-on-year increase of 35.5%, far exceeding the global average growth rate. The market size increased to approximately 837.8 billion yuan in 2024, a year-on-year growth of 35.9%.

From a classification perspective, the size of China’s public cloud market is 456.2 billion yuan, a year-on-year increase of 40.1%, accounting for 74.48% of the domestic cloud computing market; the scale of the private cloud market is 156.3 billion yuan, a year-on-year increase of 20.8%, accounting for 25.52% of the domestic cloud computing market.

From 2014 to 2018, the registration volume of cloud computing related enterprises in China has been increasing year by year, but the growth rate has slowed down year by year. In 2019, there was even a brief year-on-year decrease of 10.6% to 32000. However, with the dual promotion of the government and industry, cloud computing technology has developed rapidly in China. The registration volume of related enterprises in 2021, 2022, and 2023 increased by 167.5%, 23.8%, and 21.9% year-on-year to 104000, 129000, and 157000, respectively. Among them, the registration volume in 2023 was more than 15 times that of the same period in 2014.

Current situation of the supercomputing market:

In terms of market size, the global supercomputing market is showing a stable growth trend. By 2024, the market size is expected to have reached billions of dollars and maintain a high compound annual growth rate. The growth is mainly driven by technological innovation, expansion of application fields, and large-scale government funded projects. With the continuous enhancement of computing power and optimization of algorithms, supercomputing will play a core role in more critical fields, promoting the development of science, technology, and social economy.

With the rapid development of emerging technologies such as artificial intelligence, big data, and cloud computing, the demand for supercomputing services (supercomputing services) in the market continues to grow. According to data from multiple authoritative institutions, the scale of China’s supercomputing service market continues to expand. In 2021, the scale of China’s supercomputing service market reached 19.66 billion yuan, of which the scale of the third-party supercomputing service market was 3.2 billion yuan. In 2024, the scale of China’s supercomputing service market is expected to approach 40 billion yuan, and by 2025, this number is expected to have further increased to 46.6 billion yuan, with a compound annual growth rate maintained at a high level of about 24%. This growth trend is mainly due to technological progress, policy promotion, and the continuous increase in market demand.

(2) Cloud computing and supercomputing market prospects

Cloud computing market prospect:

Global market size: By 2024, the global cloud computing market size is expected to have exceeded hundreds of billions of dollars and continue to grow at a double-digit compound annual growth rate. This growth trend is mainly driven by multiple factors such as technological innovation, diversified services, and policy support.

The size of China’s market: In 2023, the size of the Chinese cloud computing market reached 616.5 billion yuan, a year-on-year increase of 35.5%, with a growth rate significantly higher than the global average. The market size grew to approximately 837.8 billion yuan in 2024, with a year-on-year growth rate of approximately 35.9%.

Market structure:

Public cloud and private cloud: In China, the public cloud market dominates, with a market size of 456.2 billion yuan in 2023, a year-on-year increase of 40.1%, accounting for 74.48% of the domestic cloud computing market. Although the private cloud market is relatively small, it still maintains growth, with a market size of 156.3 billion yuan in 2023, a year-on-year increase of 20.8%, accounting for 25.52%.

Main service providers:

Alibaba Cloud: In the public cloud IaaS market, Alibaba Cloud ranks first with a market share of 21.31%. Alibaba Cloud not only leads the IaaS market, but also holds an advantage in the PaaS field, serving over 1000 large government and enterprise clients and hundreds of financial institutions.

Supercomputing market prospect:

Market size in China: It is expected that by 2025, the market size of China’s supercomputing cloud services will have reached 11.19 billion yuan, with a compound growth rate of 52.4% from 2021 to 2025, and the market penetration rate is expected to have increased to 24%.

Industry applications and development trends:

Industrial applications: Cloud computing applications in government affairs, transportation, energy, finance, industrial manufacturing, medical care, the Internet, information services and other fields continue to grow. The cloud adoption rate of large enterprises reaches 81%, while the overall cloud adoption rate of small and medium-sized enterprises is about 15%, indicating huge potential for future development.

Technological innovation: Cloud computing, with its advantages of centralized computing power, flexible deployment, on-demand payment, and high cost-effectiveness, provides solid underlying computing power support for the innovation of emerging technologies such as big data, the Internet of Things, cloud native, big models, and artificial intelligence.

Technical features: Supercomputing is mainly used for large-scale scientific computing and complex simulation tasks, requiring extremely high computing power and storage requirements. Supercomputing cloud services combine the powerful computing capabilities of supercomputing with the flexibility of cloud computing, making them suitable for large-scale scientific research and engineering computing.

The market prospects for cloud computing and supercomputing are vast, and it is expected to maintain a high-speed growth trend in the coming years. With the deepening of enterprise digital transformation, the demand for cloud computing services continues to rise, creating new growth opportunities for supercomputing services. At the same time, the government’s emphasis and increased investment in technological innovation have provided strong support for the development of cloud computing and supercomputing. In addition, with the popularization of new generation information technologies such as 5G and the Internet of Things, the explosive growth of data volume will bring new opportunities to the cloud computing and supercomputing markets. In this context, the cloud computing and supercomputing markets are expected to show strong growth momentum and become important forces driving future economic development.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

The intensive introduction of national policies strongly supports the development of computing power, high-performance computers, and the supercomputing industry, driving the rapid progress of supercomputing center construction.

The national 14th Five-Year Plan emphasizes accelerating the construction of a nationwide integrated big data center system, strengthening intelligent scheduling of computing power, and building E-level and 10E level supercomputing centers; the Overall Layout Plan for the Construction of Digital China proposes to systematically optimize the layout of computing infrastructure, promote efficient complementarity and collaborative linkage of computing power between the east and the west, and guide the rational hierarchical layout of general data centers, supercomputing centers, intelligent computing centers, edge data centers, etc.

Jilin Provincial Government attaches great importance to the development of the digital economy and has introduced a series of policies to support the development of cloud computing and supercomputing projects. The General Office of the People’s Government of Jilin Province has released the Implementation Plan for Accelerating the High-quality Development of Jilin Province’s Digital Economy (2023-2025), which clearly proposes to enhance the independent innovation capability of digital technology and promote the integrated development of digital technology and the real economy.

Changchun has established a leading group for the construction of digital Changchun, and has studied and issued policy documents such as the 14th Five-Year Plan for Digital Changchun, the Action Plan for the Development of Changchun’s Digital Economy, the Action Plan for Breakthrough in the Development of Changchun’s Digital Economy, the Policies to Support the Development of Digital Industries in Changchun, etc., placing the development of digital economy in a prominent position and incorporating it into the key cultivation of the “3-transformation, 4-strong and 7-new” modern industrial system, highlighting industrial digitization, digital industrialization, governance digitization, and data value, and making every effort to seize the “new track” of digital economy.

(2) Industrial advantages

Jilin Province has also made significant progress in infrastructure construction. The pace of smart agriculture construction is accelerating, utilizing technologies such as big data and satellite remote sensing to enhance the modernization level of agriculture. At the same time, it will promote the intelligent transformation and digital transformation of the industrial sector, and continuously improve the level of digital development in key industrial areas.

Jilin Province has abundant natural resources and a solid industrial foundation, which provides a solid foundation for cloud computing and supercomputing projects. Especially in the field of big data processing, Jilin Province relies on abundant resources and relatively low labor costs, and many enterprises have made breakthroughs in big data analysis and artificial intelligence technology research and development.

Jilin Province is also continuously strengthening its investment in scientific research, with the government and enterprises working together to promote technological innovation. For example, Jilin Province is deploying and implementing multiple major science and technology projects, striving to achieve new breakthroughs as soon as possible. In addition, the government has actively introduced policies to support the development of the IT industry in Northeast China, providing financial support and optimizing the business environment.

Changchun City has taken advantage of the “digital” trend to build a number of digital economy industrial parks, initially forming a cluster of digital economy enterprises. Changchun Big Data Deep Processing Base, Changchun Computing Power Center, and Changchun Data Trading Center have successively operated, forming a diversified digital industry pattern including optoelectronic information, artificial intelligence, electronic components, big data, e-commerce and other formats.

In 2023, the digital transformation and upgrading campaign for industrial enterprises in Changchun City was officially launched, and the Implementation Plan for Digital Transformation and Upgrading of Industrial Enterprises in Changchun City was formulated to accelerate the implementation of the Policies for Accelerating Digital Transformation and Upgrading of Industrial Enterprises in Changchun City. 556 industrial enterprises started digital transformation and upgrading. From 2023 to 2025, it will achieve full coverage of digital transformation and upgrading for 1286 industrial enterprises above designated size in the city.

Currently, 31 of the top 100 national electronic information enterprises have settled in Changsha, forming a digital economy enterprise cluster with the three major communication operators, Huawei, Inspur, 360 Group, Anheng, and Changguang Satellite Technology Co., Ltd. as the backbone. The trend of domestic leading enterprises, local enterprises, and universities forming a group for development has initially taken shape, and the trend of enterprise agglomeration has begun to emerge.

(3) Location advantages

Changchun Economic Development Zone is located in Changchun City, Jilin Province, at the geographical center of Northeast Asia. It is an important node in the Harbin-Dalian Economic Belt and China-Mongolia-Russia Economic Corridor. This geographical location makes the Economic Development Zone an important hub connecting various countries in Northeast Asia, which is conducive to international trade and regional cooperation.

The transportation network in the Economic Development Zone is extremely convenient. The area integrates various modes of transportation such as aviation, railway, highway, and light rail, and has Longjia International Airport. It takes 1.5 hours to reach 2/3 of the cities in China and 5 hours to fly to major cities around the world. In addition, there are multiple highways and railway lines within the area, which facilitate logistics and personnel flow.

(4) Talent advantages

Changchun Economic Development Zone has abundant human resources and strong technological strength. There are 28 higher education institutions such as Jilin University in the jurisdiction, with national research institutions such as Changchun Institute of Optics, Fine Mechanics and Physics, Changchun Institute of Applied Chemistry, 97 independent research institutions, 71 national or provincial key laboratories, 25 academicians of the Chinese Academy of Sciences and Chinese Academy of Engineering, over 300000 college students, and a total of more than 600000 talents, which can provide talent support for the project.

1.2 Contents and scale of project construction

Construction scale:

The building area is 15000 square meters. The project will build a complete supercomputing system, including high-performance computing clusters, data storage systems, cloud computing service platforms, etc., to meet the computing needs of different fields.

1. High performance computing cluster: Use advanced processor and graphics card technology to build a supercomputer cluster with powerful computing capabilities. The cluster will have a continuous computing capacity of XXEflops, which can meet the needs of complex computing tasks such as large-scale scientific computing and simulation.

2. Data storage system: Use high-speed, high-capacity, and highly reliable storage media and disk array technology to build an efficient data storage system. The system supports multiple data interfaces and transmission protocols, with strong data read and write capabilities and scalability, ensuring secure and reliable storage and transmission of data.

3. Cloud computing service platform: Based on cloud computing technology, it is to build a flexible, scalable, and easy to manage cloud computing service platform. The platform will provide comprehensive cloud services such as computing resources, storage resources, and network resources, supporting various cloud computing applications and services to meet the diverse computing needs of users.

Product plan:

1. High performance computing services: Provide high-performance computing services that support various complex computing tasks such as scientific computing and simulation. Users can access the supercomputer center through remote login or API interfaces to obtain powerful computing support.

2. Cloud computing services: Provide comprehensive cloud computing services including cloud hosts, cloud storage, cloud networks, etc. Users can choose suitable cloud services according to their own needs, achieving rapid deployment, elastic scaling, and efficient management.

3. Data storage services: Provide efficient and reliable data storage services, supporting multiple data interfaces and transmission protocols. Users can store their data in the data storage system of the supercomputer center and enjoy high-speed, secure, and reliable data storage services.

4. Customized services: Provide customized services based on user needs, including hardware customization, software customization, application customization, etc. They will tailor the most suitable solution for users based on their specific needs.

The Sihe Cloud Computing Supercomputing Center Project will build a high-performance, efficient, and highly reliable supercomputing center, providing powerful computing support for fields such as scientific research, education, and enterprises. Through the construction of this project, we will further promote the development and application of cloud computing and supercomputing technologies, and make greater contributions to China’s scientific and technological progress and industrial upgrading.

1.3.Total investment of the project and capital raising

The total investment of the project is 500 million yuan, including the construction investment 400 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 420 million yuan, its profit will be 125 million yuan, its investment payback period will be 6 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 25%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

It is expected that the project will create about 500 job opportunities for the local area, promote the development of related industrial chains, and drive regional economic diversification. The project will utilize cutting-edge cloud computing and supercomputing technologies to enhance the informatization level of local enterprises and strengthen their market competitiveness. In addition, the implementation of the project will promote the research and application of local education and research institutions in fields such as big data analysis and artificial intelligence, and cultivate more high skilled talents for society. In terms of environmental protection, the project will implement energy-saving and emission reduction measures to ensure the environmental friendliness of the operation process, which is in line with the national strategic goal of sustainable development.

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation

1.6 What to be invested by the foreign party

The foreign party can become a shareholder in the form of capital, technology, and equipment investment, and the investment ratio shall be determined through consultation between the two parties, and the ratio shall comply with relevant industry regulations.

1.7 Construction site of the project

Changchun Economic and Technological Development Zone

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Unit basic information

Name: Photo-electronic Information Industry Development Office of Changchun Economic and Technological Development Zone

Address: Building 7 Photo-electronic Information Industry Park, 7691 Ziyou Road, Changchun Economic and Technological Development Zone

2.2 Unit overview

Changchun Economic and Technological Development Zone was established in 1992 and was approved by the State Council as a national level economic and technological development zone in 1993. It currently has an administrative jurisdiction area of 112 square kilometers, four streets and one town, and a permanent population of 400000. It is the main battlefield of Changchun’s real economy and a gathering place for foreign-funded enterprises.

1. Development positioning. Changchun City has clearly established the “4+1” core area for the construction of the optoelectronic information industry, and is cultivating new quality production.

Led by force, it closely adheres to the construction of the city’s “one center, five highlands” and “two cities”, binds Changchun Institute of Optics and Fine Mechanics as the “largest innovative leader” in the field of optoelectronics, focuses on breaking through the trend, becoming bigger and stronger, and becomes more refined and optimized, leading and driving a group of leading enterprises to develop into supporting clusters, striving to have achieved a scale of over 33 billion yuan in the optoelectronics information industry in the whole zone by 2025, accounting for more than one-third of Changchun’s output value, and striving to build a leading demonstration zone and a benchmark zone for new quality productivity in the optoelectronic industry.

2. Ecological construction. The industrial ecosystem is mainly constructed from three dimensions: ① One valley and seven parks are in full swing. Investing 30 billion yuan to build the “Xinguang Intelligent Valley” covering an area of 1 million square meters, it is the largest gathering area for the optoelectronic information industry in Northeast China. It includes seven major parks named after leading enterprises, namely the first phase “Hengguang Park”, the second phase “Yunguang Park”, the third phase “Zhiguang Park”, the fourth phase “Jiguang Park”, the fifth phase “Xingguang Park”, the sixth phase “Huaguang Park”, and the seventh phase “Guangguang Park”. At present, The first to fourth parks are put into use or basically completed, and can fully undertake project placement. The fifth to seventh parks will start implementation, striving to have more than 200 enterprises settle in within 5 years, with an output value exceeding 20 billion yuan, and an output value exceeding 50 billion yuan within 10 years. ② One institute and two universities empower the photo-electronic industry. It has formed a strong alliance with Changchun Institute of Optics and Fine Mechanics, Jilin University, and Changchun University of Science and Technology, adopting a “government+institute university+joint venture company” model. Through joint investment or land and factory investment, it aims to innovate cooperation mechanisms, create exchange platforms, and achieve complementary advantages around the most cutting-edge technologies in the field of optics, transforming the “flowers of innovation” into the “fruits of industry”. ③ One street, two centers, and six major platforms converge to form a torch. Accelerating the construction of a demonstration street for the optoelectronic information industry that combines beautification, greening, lighting, and coloring, incorporating optoelectronic elements, it will become a new landmark for internet celebrities to lead technological trends and inherit cultural heritage. The Youth Innovation Center of Changchun Institute of Optics and Fine Mechanics, which provides ten services including comprehensive research and development, technology transfer, small-scale and pilot testing, intellectual property, journal exhibitions, consulting and training, entrepreneurship counseling, salon forums, industry expansion, investment and financing, has become a “regional highland”for talent attraction and retention. The National Semiconductor Laser Technology Innovation Center, which integrates technological innovation, product pilot testing, and achievement transformation, operates smoothly and can break through the bottleneck of high-end laser chip technology in China, with an annual output of 10 million chips and an output value of over 10 billion yuan. Six innovative platforms, including the State Key Laboratory of Applied Optics, the State Key Laboratory of Luminescence and Applications, the State Key Laboratory of Laser Matter Interaction, and the National Engineering Technology Research Center, gathered in our district to jointly crack the national "choke" technology.

3. Industrial clusters. Focusing on the five major fields of optoelectronic core components, laser technology and applications, optoelectronic new materials, imaging and display, and high-end equipment manufacturing, it has strongly promoted the rapid rise of a group of leading enterprises in the optoelectronic field, achieving the clustering of more than 100 key enterprise clusters including central enterprises, Fortune 500 companies, unicorns, and quasi listed companies. At present, there are mainly CMOS core component production and research and development enterprises represented by Changguang Chenxin, Changguang Zhengyuan, Changguang Yuanchen, large-diameter laser technology application enterprises represented by Jiguang Semiconductor Co., Ltd., new optoelectronic composite material enterprises represented by Changguang Jingci and Changguang Qichen, system imaging and display enterprises represented by Changguang Xinshi, Changguang Aorun, and Jitian Xingzhou, and optical high-end equipment manufacturing enterprises represented by Changguang Huada, Changguang Daqi, and Opu Optoelectronics. Changguang Chenxin has surpassed the 1 billion mark and occupies “half of the market” in related niche fields. Several products of the listed company AOPU Optoelectronics have been successfully applied in major national projects such as Shenzhou and Tiangong.

4. Policy services. The implementation of “customized construction” services can promote production and sales collaboration, achieving “land acquisition, project approval, construction, and output in the same year”. Through the forward-looking service of “fund injection”, it aims to cultivate the integration of industry and finance, and makes every effort to create a billion dollar fund matrix with government guided funds as the “leader” and social capital as the “competitor”, injecting “soaring wings” into the development of the optoelectronic information industry. It promotes the improvement of production and service through customized services guided by policies, and has introduced a series of policies to support the optoelectronic information industry, forming a multi-dimensional and multi-chain policy system.

2.3 Contact method

Contact person: Wang Xue

Tel: +86-431-84997116   

Contact method of the city (prefecture) where the project is located:

Contact unit: Changchun Cooperation and Exchange Office

Contact person: Zhang Junjie

Tel: +86-15704317930

Fax: +86-431-82700590

E-mail: xmc82763933@163.com