Quanta Computer Inc (廣達), the world’s largest server and notebook computer manufacturer, plans to expand its server operations in the US in the face of rising demand and US president-elect Donald Trump’s campaign vow to boost US manufacturing, a company executive said.
Quanta Cloud Technology (QCT, 雲達科技), its server subsidiary, plans to expand the production capacity of its two US plants in the next three years, Mike Yang (楊晴華), president of QCT and a senior vice president and general manager at Quanta Computer, said in a report by Nikkei Asian Review.
Yang said that QCT has the “upper hand” should Trump’s campaign promise become policy, as the company already has server assembly facilities in Fremont, California, and Nashville, Tennessee.
The demand for more domestic data centers is expected to grow if Trump adopts a protectionist approach in manufacturing, which would help support Quanta’s revenue growth, Yang said in the report.
The company plans to double its server assembly facilities, output and headcount in the US in the next three years, Yang said.
Quanta said in a filing with the Taiwan Stock Exchange on Friday last week that it plans to give QCT a cash injection of US$10 million to fund its operations’ expansion.
Quanta’s cloud-computing segment — which includes server, storage, switch and Internet-of-Things (IoT) devices — has been an important revenue growth driver amid a declining notebook industry.
The segment accounted for between 30 and 35 percent of the firm’s total revenue of NT$628.73 billion (US$19.72 billion) in the first three quarters of the year, with sales growing by a double-digit percentage from the same time last year, Quanta said.
Its cloud-computing clients include Google, Amazon.com Inc, Microsoft Corp and Facebook Inc.
“We expect revenue from this segment to continue increasing by a double-digit percentage next year, supported by the rising demand from telecom operators, enterprises and technology ‘unicorns,’” a Quanta investor relations official said by telephone yesterday.
Company chairman Barry Lam (林百里) on Nov. 10 told a news conference that the cloud-computing segment would remain Quanta’s main growth driver next year.
Inventec Corp (英業達), a smaller rival of Quanta in the server business, is mulling the possibility of reopening its server assembly line at its branch in Houston, Texas, in view of a potential change in US manufacturing policy.
Inventec mainly assembles servers for its US clients at its plant in Mexico, which employs 1,200 and has a monthly production capacity of 35,000 units, its investor relations official said.
“If Trump’s vow becomes policy, Inventec would likely reopen its assembly line in Houston to meet clients’ needs, despite a possible increase in labor costs,” the official said by telephone.
Inventec’s server business accounted for 35 percent of its total revenue of NT$111.65 billion last quarter.
Revenue from this segment surged 20 percent in the first three quarters of the year compared with a year earlier, the company said.
An index launched a year ago to give investors greater exposure to China’s Internet giants is now the world’s worst-performing major technology gauge. The Hang Seng Tech Index has been on a roller-coaster ride in the past 12 months. The gauge, which marks its first anniversary on Tuesday, was up 59 percent at its February peak, but has since seen more than US$551 billion in market value wiped out amid Beijing’s clampdown on the sector. That has reduced its gain to nearly 6 percent, compared with more than 40 percent for the MSCI World Information Technology Index and the NASDAQ-100 Index. The
EDUCATION AS WELFARE: New regulations threaten to upend the lucrative private education sector that teaches the public school curriculum to paying families China unveiled a sweeping overhaul of its US$100 billion education tech sector, banning companies that teach the school curriculum from earning profit, raising capital or going public. Beijing on Saturday published an array of regulations that together threaten to overturn the sector and jeopardize billions of dollars in foreign investment. Companies that teach school subjects can no longer accept overseas investment, which could include capital from the offshore registered entities of Chinese firms, according to a notice released by the Chinese State Council. Those in violation of that rule must take steps to rectify the situation, the country’s most powerful administrative
‘IN ITS INFANCY’: The company’s 12-inch fab in Arizona is to be its first major overseas chip manufacturing site, while the fab in Japan would be its second, if it is constructed Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is evaluating the feasibility of constructing a semiconductor fabrication plant in Germany as it continues to expand overseas, it said yesterday. A shareholder at the contract chipmaker’s annual general meeting in Hsinchu City yesterday asked about the possibility following media reports earlier this month that TSMC was approached by the German government about building a chip fab in the country, as Europe joins the US and China in establishing local chip supplies in a bid to avert future chip shortages. “About the German fab, we are seriously looking into it, but it is still in its
The next target for China’s cybersecurity crackdown is to be the pools of data collected by the latest generation of vehicles. This approach risks Beijing shooting itself in the foot, and jeopardizing its ambitious plans to lead the global race for electric and autonomous vehicles. China wants to have control over the information vehicles have about their drivers, the roads they traverse, and the faces and voices they pass, according to a draft law on data-security management for the automotive industry issued in May. It seeks to ensure manufacturers across the auto supply chain keep data in the country and pass