Inventec Corp (英業達) is optimistic about the growth momentum in its server and data center businesses this year and shrugging off concerns about a local rival poaching company talent, Inventec chairman Tom Cho (卓桐華) said on Friday.
“There were indeed some of our employees who went to another company... This might sound a bit callous toward our former colleagues, but I have to say that Taiwan’s best server talent is still at Inventec,” Cho told a news conference ahead of the firm’s annual employee banquet at Nangang Exhibition Hall on Friday last week.
Cho’s remarks confirmed market speculation that Compal Electronics Inc (仁寶) last year lured sales staff and engineers working on server research and development from Inventec, including the company’s former head of sales, who was responsible for server orders from Hewlett Packard Enterprise.
“[You] should spend more resources on cultivating the strength of your own engineers and let them do their job,” Cho said, referring to Compal. “Do not use improper means to compete against other companies.”
Inventec has become a leader in the nation’s server industry because it spent years building its technological strengths and production capacity, Cho said.
Inventec’s server business accounted for more than 30 percent of the company’s revenue, totaling NT$467.51 billion (US$16.04 billion) last year, a company financial statement showed.
Using original design manufacturing as a basis for comparison, Cho forecast flat revenue for the company’s server-related products this year, compared with a year earlier, while expecting double-digit growth for its data center business.
Inventec’s data center clients include Amazon.com Inc, as well as China’s Baidu Inc (百度), Alibaba Group Holding Ltd (阿里巴巴) and Tencent Holdings Ltd (騰訊).
Compal president Ray Chen (陳瑞聰) on Friday last week said the company aims to narrow the losses from its server business to NT$300 million from last year’s NT$600 million.
Compared with its domestic peers, Compal is a latecomer to the server business, but expects it to become profitable from next year, Chen told a media gathering.
Shares of Inventec dropped 1.03 percent to NT$24.1, while Compal rose 1.4 percent to close at NT$21.7 in the local bourse yesterday. The TAIEX gained 0.67 percent.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
Industrial production expanded 22.31 percent annually last month to 107.51, as increases in demand for high-performance computing (HPC) and artificial intelligence (AI) applications drove demand for locally-made chips and components. The manufacturing production index climbed 23.68 percent year-on-year to 108.37, marking the 14th consecutive month of increase, the Ministry of Economic Affairs said. In the first four months of this year, industrial and manufacturing production indices expanded 14.31 percent and 15.22 percent year-on-year, ministry data showed. The growth momentum is to extend into this month, with the manufacturing production index expected to rise between 11 percent and 15.1 percent annually, Department of Statistics
An earnings report from semiconductor giant and artificial intelligence (AI) bellwether Nvidia Corp takes center stage for Wall Street this week, as stocks hit a speed bump of worries over US federal deficits driving up Treasury yields. US equities pulled back last week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government’s US$36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5 percent and hitting its highest level since late 2023. Stocks were dealt another blow on Friday when US President Donald
RSS