TAIPEI (Taiwan News) — Taiwan’s major contract server manufacturers posted record annual revenues last year, fueled by strong global demand for artificial intelligence infrastructure.
Wistron said Thursday its full-year revenue reached NT$2.18 trillion (US$68.9 billion), up 108.4% from the previous year and marking a company record. Quanta Computer also reported record sales of NT$2.124 trillion, a 50.5% increase year-on-year, according to CNA and LTN.
Wistron said shipments of notebook computers and personal computing products are expected to decline in the first quarter compared with the previous quarter, reflecting seasonal factors and a higher comparison base from the fourth quarter of last year. Demand for AI servers and graphics processing unit-based systems is expected to hold steady in the first quarter, which is typically a slower period for the industry.
The company said current market conditions are stronger than those usually seen during the off-season. Year-on-year growth is expected to remain solid.
Quanta said AI servers accounted for more than 70% of its total server revenue in the fourth quarter of last year, nearing its 80% target for this year. It said most of its current projects are focused on building server motherboards, with plans to gradually expand into complete server racks.
The company added that AI server shipments are expected to increase this year. With production cycles typically lasting six to eight weeks and factories operating at close to full capacity, Quanta said it is continuing to expand manufacturing operations in Thailand, Germany, and the US.
The growing use of generative AI, such as ChatGPT and Gemini, has increased demand for AI servers. Combining CPUs, GPUs, and specialized chips, AI servers require more complex assembly and integration than conventional servers, according to Business Next.
Tasks such as assembling and testing, integrating multiple servers into racks, installing software, and optimizing performance require a higher level of technical integration, compared with simpler processes like motherboard production and basic assembly. Taiwanese firms such as Foxconn, Quanta, and Wistron's subsidiary Wiwynn specialize in system-level services, providing integrated solutions to cloud service providers.
