WPG Holdings, a leading IC distributor, has seen a marked surge in demand for AI servers in the Chinese market in recent months. This upswing has invigorated procurement activities across the supply chain, delivering a tangible boost to the company's operations. Defying traditional seasonal slowdowns, the first quarter of 2025 is poised to exhibit unusual vigor, with full-year performance projected to outpace broader market growth.
COMPUTEX 2025 will run from May 20–23 at Taipei's Nangang Exhibition Center, spotlighting "AI Next" as its core theme. The event will host top global tech companies unveiling the latest AI and computing breakthroughs.
Oracle reported its financial results for the third quarter of fiscal year 2025, revealing revenue below market expectations but maintaining an optimistic outlook on long-term cloud growth. The company cited increasing demand for artificial intelligence (AI) computing from enterprise clients as a key driver of future expansion.
Automotive electronics and lifestyle technology systems provider Yen Sun Technology anticipates growth momentum will come from high-end networking IT demand in 2025, driven by the widespread adoption of AI applications due to the emergence of China's DeepSeek.
Taiwanese ODM Compal Electronics has reported a February 2024 revenue of NT$67.541 billion (US$2.0 billion), up 22.1% sequentially and 17.4% year-on-year, driven mainly by shipment momentum for non-PC product lines, including smart devices and servers.
Microloops, a heat dissipation module manufacturer, stated that with the DeepSeek AI model powered only by Nvidia's mid-range GPUs, most AI server chips require only air cooling to operate efficiently. This signals a significant surge in demand for air cooling solutions in 2025, which is expected to drive substantial growth for Microloops' air cooling products.
Liteon Technology reported a consolidated revenue of NT$10.9 billion (US$330 million) for February 2025. This reflects a month-over-month decline of 10%. However, it represents a substantial year-over-year increase of 35%—the company's strongest February performance in three years.
Taiwan-based server ODMs, having had strong sales in February, anticipate that this growth momentum will persist through the end of the second quarter and potentially into the latter half of this year.
xAI, the artificial intelligence (AI) startup founded by Elon Musk, has acquired 1 million square feet (93,000 square meters) of land in southwest Memphis, Tennessee, for the expansion of its Colossus supercomputer, according to the Greater Memphis Chamber of Commerce.
US President Donald Trump's impact on the supply chain has been deep and far-reaching, with his tariff policies from 2017 having a lasting effect to this day.
Advantech sees order momentum rebounding, with the regional book-to-bill ratio climbing above 1. General Manager and CFO Eric Chen expects steady growth in 2025, bolstered by the rapid expansion of the Edge AI market.
With AI adoption accelerating across industries, Chinese tech firms are simplifying AI infrastructure to meet growing demand. Many are rolling out all-in-one (AIO) servers powered by DeepSeek's advanced AI models, targeting government, finance, public services, and healthcare.
On February 28, 2025, the Prime Minister of Vietnam, Pham Minh Chinh, met with executives from 23 major Chinese corporations in Hanoi to strengthen economic ties and position Vietnam as a key global production hub. The roundtable, reported by Bloomberg and Viet Nam News, centered on expanding investments in infrastructure, energy, and high-tech manufacturing.
Rumors suggest Microsoft has ended some US data center leases, sparking fears of reduced demand for Internet Data Centers (IDCs). In contrast, Taiwanese IDC operators are optimistic, citing partnerships with major cloud providers and predicting continued demand for the next 20 years, fueled by green energy, fiber optics, and a skilled workforce.
The surge in AI server deployments is fueling increased demand for backup battery units (BBUs). Dynapack International Technology President Chung-hsing Chang noted that demand is not only growing but also shifting toward higher power capacities, with BBU wattage set to rise from 3–5kW to 8kW. Future product roadmaps indicate that upcoming BBU models will surpass 100kW.
Stronger-than-expected AI demand has prompted Sunonwealth Electric Machine Industry (Sunon) to upgrade its first-quarter 2025 outlook from cautious to optimistic. Initially forecasting a sequential decline, the company now expects quarter-over-quarter growth, fueled by surging AI server demand. Sunon sees strong AI server orders continuing in the first half of the year, with additional momentum in the second half from Wi-Fi 7 routers and 800G switches.
As part of its business transformation efforts, President Information Corp (PIC), a subsidiary of Taiwan's Uni-President retail conglomerate, has launched the Lumine AI service suite. This new offering integrates six core solutions aimed at lowering AI adoption barriers for small and medium-sized enterprises (SMEs) in Taiwan and Southeast Asia.
Alibaba Cloud debuted at the Mobile World Congress (MWC) and hosted a global summit during the event. Wei-guang Liu, SVP of Alibaba Cloud Intelligent Group, highlighted the rising trend of multi-cloud architecture due to the global expansion of public clouds. This trend is timely as AI and large language models are flourishing.
Recent cases of submarine cable disconnections off the coast of Taiwan have raised concerns about national security, prompting Internet data center (IDCs) operators to mull the feasibility of introducing satellite communications systems as backup.
Lenovo has unveiled a plan to manufacture all its PC models in India exclusively for the Indian market over the next three years. The company is also preparing to manufacture GPU-based servers for artificial intelligence in Pondicherry.
After reaching a new low in 2024, key players in Taiwan's machine tool industry believe demand will rebound in 2025 and may even see double-digit growth.
Despite a 16% growth in sales, Hewlett Packard Enterprise (HPE) issued a weaker-than-expected profit forecast and announced a layoff plan affecting 3,000 jobs.
On March 5, Giga Computing, a subsidiary of Gigabyte, announced it had signed a memorandum of understanding (MOU) with South Korea's SK Telecom and SK Enmove. The three parties will collaborate to drive innovation in AI data center (AIDC) and high-performance computing (HPC) technologies, accelerating the application of next-generation liquid cooling solutions in data centers.
