- The 2.7-square-kilometer cluster will focus on fusion reactor design, superconducting materials and AI-powered fusion research
- An industry alliance aims to connect research, commercialization and capital across the fusion supply chain
Shanghai’s Minhang District has launched a new industrial cluster dubbed “Solar Valley” (太阳谷) as the city moves to build out a commercial ecosystem around its growing nuclear-fusion ambitions.
The cluster, unveiled August 27 during the 2026 Fusion Energy Conference and Fusion Energy Week, will cover about 2.7 square kilometers within the Shanghai Maqiao AI Innovation Pilot Zone (上海马桥人工智能创新试验区).
A global hub
It aims to become a global hub for high-end fusion equipment R&D and manufacturing, technology commercialization and industrial innovation.
The project will focus on four areas: fusion reactor design, precision plasma control, high-temperature superconducting materials and AI-powered fusion research.
The launch came a day after Shanghai unveiled the target image of “China Fusion Engineering Test Reactor IV,” or CFETR-IV, described as the world’s first high-temperature superconducting, high-field steady-state burning experimental platform.
The facility, being developed by China Fusion Energy Co. in Shanghai, is expected to provide a major scientific anchor for the city’s emerging fusion industry.
Three zones
The “Solar Valley” will comprise three zones covering scientific research, industrial support and startup incubation.
Seven companies have already established operations there, spanning superconducting materials, key components, equipment manufacturing, simulation algorithms and system integration.
The cluster has also built a broader network of more than 20 fusion-industry companies and nearly 100 investment funds.
An industry alliance led by Shanghai State Owned Capital Investment Co., Ltd. was also launched during the conference.
Centered on China Fusion Energy Co., the Fusion Ecosystem Alliance brings together nearly 20 companies, universities, research institutes and investment institutions to connect basic research with pilot-scale development and commercial deployment.
Industrial ecosystem
The Shanghai state capital investor said it plans to invest in and attract companies across the fusion supply chain, including upstream materials, critical components and AI-for-fusion technologies, with the goal of mobilizing more than 10 billion yuan ($1.4 billion) in social capital.
The twin moves highlight Shanghai’s effort to turn fusion from a major-science project into an industrial ecosystem.
The large-scale fusion facility provides the technological anchor, Solar Valley offers a base for commercialization, while the alliance is designed to connect companies, research institutions and capital.
Why it matters globally
For global investors and industry players, the development underscores China’s growing push to build a domestic fusion supply chain rather than focus solely on reactor research.
With CFETR-IV and other major facilities drawing companies into Shanghai, the city is positioning itself to capture more of the manufacturing, materials and AI technologies that could underpin the next generation of fusion power.
Header image generated by Doubao
