TAIPEI (Taiwan News) — Taiwan’s leading contract manufacturers Wistron and Inventec reported record-high January revenue, driven by surging demand for artificial intelligence servers.
Wistron’s AI server production lines in Texas and California operated overtime during the Lunar New Year holiday from Jan. 25 to Feb. 2 to meet demand. The company posted NT$90.79 billion (US$2.89 billion) in consolidated revenue for January, down 14.07% from December’s record high but up 34.9% year-over-year, per CNA.
Inventec reported NT$45.84 billion in revenue for the month, reflecting a 36.56% decline from December but a 3.88% increase year-over-year.
An AI server is a specialized computing system designed to handle the complex processing demands of artificial intelligence applications. These servers play a crucial role in the AI supply chain, as they determine the execution speed and accuracy of AI algorithms while also ensuring the stability of the entire AI system, according to CW.
The AI supply chain is often divided into two segments: upstream and midstream hardware, and downstream software. AI servers belong to the hardware segment, providing the computational power necessary for AI development, while the software segment focuses on AI model training, inference, and application deployment.
Wistron primarily focuses on upstream AI server components, such as motherboards and modules, but has recently begun expanding into downstream system assembly. Inventec operates in the midstream AI server industry as an original design manufacturer, specializing in server assembly and production for major tech companies.
Wistron expects its AI server shipments to grow by double digits quarter-over-quarter in Q1. Amid heightened tariff concerns under US President Donald Trump, Wistron emphasized its flexibility in Texas and California, allowing it to adjust production lines based on client needs.
With Trump's decision to impose additional tariffs on Canada, Mexico, and China now delayed, Inventec stated it will prioritize shipments from tax-exempt locations, including the Czech Republic and Thailand, in the short term.
Despite potential US production cost increases of up to 30%, Inventec is seeking a Texas-based assembly site with sufficient power supply. The facility, expected to launch as early as the second half of this year, will import L6 motherboard components from Taiwan for final assembly in the US.
