Erver Demand News Today

Supermicro is expanding production capacity at factory sites in the US, Taiwan, and the Netherlands to meet the rising demand for AI servers and highlighted the rising adoption of liquid cooling.

Memory module and SSD vendor Team Group reportedly recently landed a large-volume B2B memory module order from an international ODM, according to industry sources.

AI servers are a high-growth area that will drive Hon Hai Precision Industrys (Foxconn) revenue growth beginning in the second half of this year, according to company chairman Young Liu.

Server ODMs continue to see customers stay reluctant to step up their pace of orders amid unfavorable market conditions, but new processors from Intel and AMD may jump start the market.

Mitac said the visibility of server orders in 2H23 remains low despite an influx of short lead-time orders, adding that AI servers may increase future revenue.

NAND flash memory prices are unlikely to stabilize until after the third quarter of 2023, according to Wallace Kou, president and CEO of flash device controller specialist Silicon Motion.

Hon Hai Precision Industry (Foxconn) expects to see its second-quarter revenue decrease both sequentially and on-year, due to ongoing inventory adjustments, the traditional off-season, and others.

Taiwan-based ODM Wiwynn has initiated shipments of AI training servers, which currently only account for a small portion of the companys revenue but are projected to increase significantly by 2024.

According to sources in the server industry, inventory corrections are likely to persist in the short term but the long-term outlook remains promising, driven by AI applications such as LLMs.

Nearly 65% of Taiwan-made servers were bound for the US between January and March, according to data from Taiwans Ministry of Economic Affairs (MOEA).