Inventec Corp (英業達), a contract maker of computers and servers, yesterday said it expects revenue from artificial intelligence (AI) servers to double this year from last year.
AI servers are to contribute to more than 10 percent of the company’s revenue this year, up from about 5 percent last year, it said, adding that AI server revenue next year would grow by double-digit percentage points.
Overall server revenue might drop slightly or be flat this year, given an unfavorable macroeconomic situation and insufficient supply of central processing units, new chairman Sam Yeh (葉力誠) told reporters after the company’s annual general meeting yesterday.
Photo: CNA
Demand for servers is expected to bounce back next year, in line with improvement in the global economy, said Yeh, whose father, Yeh Kuo-i (葉國一), cofounded the company in 1975.
Servers accounted for more than 40 percent of the company’s revenue last year, the second-biggest revenue contributor after notebook computers, Inventec said.
About 70 percent of its server clients are average enterprises and 30 percent are cloud service providers like Google.
Demand for AI servers mainly comes from cloud service providers, the company said.
Apart from servers, Inventec is also exploring new revenue growth drivers such as applications for gasoline-fueled and electric vehicles, it said.
The company also aims to expand revenue from its automotive segment to more than NT$10 billion (US$326 million) in 2026 from an estimate of NT$2 billion this year, Sam Yeh said.
The company is further expanding its manufacturing to outside of China to cope with a US-China trade dispute. It produces wearable, 5G and smart devices at a factory in Malaysia, but plans to expand capacity at its Vietnam and Shanghai plants in the second half of this year.
Shareholders yesterday approved a cash dividend distribution of NT$1.5 per common share, representing a payout ratio of 87.72 percent based on last year’s earnings per share of NT$1.71.
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