Taiwan server revenue and shipment forecast, 2025

DIGITIMES estimated that in 2024, Taiwan's server-related businesses (including servers, network and storage equipment, and related software and services) saw significant revenue growth of 63%, outperforming the 2.3% growth in Taiwan's server shipments, reaching NT$3.55 trillion.

This surge was primarily driven by the rapid development of generative AI applications, which has spurred a competitive arms race in AI computing among large cloud service providers (CSPs) and startups. Not only had they made substantial purchases of high-priced AI servers but also accelerated the upgrade of general-purpose servers.

Looking ahead to 2025, the application of large language models (LLM) will begin to take off significantly, with demand for commercial GPUs and self-developed AI ASIC servers from CSPs expected to continue growing substantially, bringing over 50% revenue growth to major Taiwanese ODMs.