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.
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
People walk past advertising for a Syensqo chip at the Semicon Taiwan exhibition in Taipei yesterday.
NO BREAKTHROUGH? More substantial ‘deliverables,’ such as tariff reductions, would likely be saved for a meeting between Trump and Xi later this year, a trade expert said China launched two probes targeting the US semiconductor sector on Saturday ahead of talks between the two nations in Spain this week on trade, national security and the ownership of social media platform TikTok. China’s Ministry of Commerce announced an anti-dumping investigation into certain analog integrated circuits (ICs) imported from the US. The investigation is to target some commodity interface ICs and gate driver ICs, which are commonly made by US companies such as Texas Instruments Inc and ON Semiconductor Corp. The ministry also announced an anti-discrimination probe into US measures against China’s chip sector. US measures such as export curbs and tariffs
RSS