YTL Group, Malaysia's largest conglomerate, has reportedly redirected its AI server orders from Supermicro to Wiwynn, a Wistron subsidiary, amid growing market attention on Supermicro's pending annual report. The order originally specified Supermicro's GB200 server racks for YTL's planned AI data center in Malaysia. Neither company has commented on the development.

AI, biomedicine, quantum computing, innovative semiconductor materials, and advanced semiconductor manufacturing are shaping up as pivotal areas for Taiwan's future research and development, with profound implications for defense and industry applications. This critical juncture was highlighted by Professor Chuu Chih-sung's groundbreaking creation of the world's smallest quantum computer at National Tsing Hua University's Department of Physics and Center for Quantum Technology.

With Donald Trump now set to return to the White House, industry players will be keenly watching his upcoming policies, given his previous strong-arm tactics and campaign rhetoric on industrial development. Much attention has centered around Foxconn in particular, as its investment project in Wisconsin was a topic of scrutiny on the campaign trail, and with the company's involvement in the booming AI industry, its responses will serve as a key indicator for the industry in general.

Weltrend Semiconductor, a specialist in USB power delivery (PD) controller chips, anticipates strong AI server demand to drive its shipment performance in the fourth quarter of 2024.

Recent negative media coverage of US AI server companies ZT and Supermicro, both Nvidia clients, has raised supply chain concerns. Sources suggest that transferring AI server orders is a complex process that cannot be done overnight.

Following Donald Trump's re-election, industry observers are monitoring potential policy impacts across sectors. Advantech, a global leader in industrial PC (IPC), announced it is evaluating US-based manufacturing. The company anticipates North America will become a key growth region in the coming years.

Following Donald Trump's re-election as US President, concerns are mounting over potential new tariffs on the server supply chain. Mike Yang, EVP and GM of Cloud Computing at Quanta Computer, emphasized the company's global footprint with manufacturing plants in the US, Thailand, Europe, Taiwan, and China, underscoring that additional factories may not be necessary at this time. Production capacity will be flexibly scaled to align with customer demand.

Adata reported October 2024 revenue of NT$34.1 billion (approx. US$1.06 billion), driven by increased DRAM shipments. The company is nearing its 2023 revenue performance and targets NT$40 billion for 2024. Adata expects strong demand for HBM and server memory, with growth anticipated in AI-related applications by 2025.

Semiconductor Week in Review (Nov 3 - 9): The semiconductor industry faces a transformative moment as TSMC readies its Arizona fab's politically-charged December opening and Intel's covert Taiwan visit reveals its deepening dependence on TSMC's advanced nodes.

The Ultra Accelerator Link (UALink) Consortium has officially become a legal entity, establishing itself to set a new high-speed, low-latency communication standard for AI data center servers.

Global supply chains are transforming from lengthy, interconnected networks to shorter, regionalized structures, driven by the prolonged US-China trade and tech conflicts and pandemic disruptions. While this transition has placed substantial pressure on small and medium-sized suppliers, they are finding ways to adapt.

Donald Trump's return to the White House promises a lot of political and economic uncertainties. The AI server supply chain believes that while the Trump administration will continue to steer the US policy towards its established course, they are bracing for more trade restrictions that may force them to adjust their global deployments.

Quanta Computer, the Taiwan-based ODM with production facilities worldwide, plans to expand its production portfolio in Southeast Asia in response to increased customer demand following the US election results.

The US currently holds a technological advantage in the field of AI, but China has considerable potential to catch up, especially in the application sector, according to Kai-Fu Lee, former head of Google China.

Inventec expects its server revenue to surpass initial projections for the fourth quarter of 2024, driven by robust H20 and H100 shipments. Despite declining notebook deliveries, the company's overall performance remains strong.

Acer e-Enabling Service Business Inc. (AEB) achieved record-high quarterly and cumulative revenue and profits in the third quarter of 2024. As the potential of generative AI (GenAI) unfolds, companies are accelerating digital transformation, which boosts demand for cloud services. This shift is also fueling reliance on data governance, value-added cloud solutions, and AI consulting, all contributing to AEB's impressive growth.

Taiwan's power supply provider, Chicony Power Technology, anticipates that its 2025 performance will likely surpass that of 2024, supported by multiple growth drivers. Key areas contributing to this momentum include high-wattage notebook power supplies, satellite and communication power supplies, server power supplies, and intelligent platform solutions aligned with net-zero carbon initiatives.

After receiving a notification from Nasdaq regarding non-compliance with listing rules, Super Micro released its preliminary net sales, which fell short of Bloomberg's average estimates.

Japanese IC substrate manufacturer Ibiden has lowered its overall performance forecast for the fiscal year 2024 (April 2024 to March 2025). Similarly, another IC substrate company, Shinko Electric Industries, also announced a downward revision of its 2024 financial outlook before releasing its earnings report. Both companies noted that despite the surge in generative AI, the demand for standard servers in non-AI data centers continues to be sluggish, which is the primary reason for their disappointing performance.

The top three global cloud service providers (CSPs) are committing to strong investments in AI data centers, ensuring steady operations for Taiwan's data center supply chain—covering servers, storage devices, and network switches—through 2025.

Following Intel's disappointing financial results, CEO Pat Gelsinger addressed Bloomberg and Yahoo Finance, openly criticizing the Biden administration for delays in CHIPS and Science Act subsidies. He further condemned recent media speculation on potential Intel acquisitions as "irresponsible rumors," emphasizing the company's commitment to independence.

Countries are making significant investments in smart city applications. According to one survey, consumers spend 70% of their time on transportation, making smart traffic management a lucrative opportunity for a variety of firms. Smart parking management systems integrated with charging stations have gained popularity, with businesses such as Acer and Asustek Computer targeting this market through their respective affiliates.

Leading AI server manufacturer Supermicro, previously delisted in 2018 for non-compliance in financial reporting, has once again found itself in turmoil. Reportedly, if it does not submit its financial statements by November 20, it risks another delisting.

Generative AI requires ample resources, yet challenges such as limited high-quality data, rising freshwater and electricity consumption in data centers, and a widening copper supply gap may emerge as critical bottlenecks to AI progress.

Recent US sanctions targeting individuals and entities, including some based in India, following rumors of advanced server exports to Russia, could disrupt Nvidia's plans to cultivate the Indian market.