Taiwan server manufacturers are expecting strong market growth in the second half of this year driven by increasing demand for both generative AI and conventional general-purpose servers from cloud service providers and enterprise customers.
Heavyweights such as Foxconn, Quanta, Inventec, and SuperMicro are at the forefront of this surge thanks to their close relationships with Nvidia and are continuing to see strong demand for H100 and A100 servers as they prepare to roll out GB200 solutions towards the end of the year. Foxconn is particularly bullish about its prospects, projecting 40% growth in its AI server business this year. Quanta and Inventec are more conservative in their forecasts, but still expect double digit growth in their server business in 2024.
Even as AI servers gain increasing market traction, the demand for conventional general-purpose servers is recovering from a slowdown in 2023. The recovery in this segment is attributed to the overall growth of digital infrastructure and the increasing reliance on cloud computing services. As more businesses transition to cloud-based solutions, the demand for reliable and scalable servers will continue to grow.
The proliferation of 5G, IoT, and edge computing is also contributing to server market growth. These technologies require robust server infrastructure to function optimally, further driving the demand for high-performance servers in the enterprise segment.
No wonder leading Taiwan PC players like Gigabyte, Asus, Asrock, and MSI are aggressively expanding their presence in the server market.
Long time technology industry fan here in Taiwan.
