Quanta Cloud Technology (QCT, 雲達科技), a server unit of Quanta Computer Inc (廣達電腦), yesterday said it would accelerate its expansion of capacity next year to catch up with growing demand for servers and cloud-computing products.
QCT has two new investments in the US totaling US$42 million to fund the expansion of laptop and server assembly lines, and to “support the future growth of our server business,” QCT president Mike Yang (楊麒令) said.
“We are also adding a new factory in Thailand and preparing for capacity expansion in Europe,” Yang said. “We are investing in a promising future.”
Photo: CNA
In total, QCT plans to introduce more than 10 new production lines next year, Yang told a media briefing, following the launch of the company’s first 5G Open Lab in New Taipei City’s Linkou District (林口) in collaboration with Intel Corp.
The lab would assist partners in carrying out end-to-end integrated development and testing on a private 5G network set up by QCT, and would serve as an incubation center for 5G solutions, the company said.
Yesterday at the lab, QCT demonstrated how smart manufacturing works on 5G enterprise private networks. The lab offers services for customers from Taiwan, Japan, Singapore and South Korea.
Photo: CNA
To meet demand from more customers, the company plans to open a similar lab in Germany next year and another one in the US, Yang said.
Despite the challenges ahead, the company has landed “more orders for next year than this year,” Quanta chairman Barry Lam (林百里) said
“Some customers placed orders for the whole of next year, or even for the next two years. This is the first time in Quanta’s 30-year history that we have seen short supply and such a long period of ordering,” Lam said.
Next year, the supply of materials and components should gradually improve, although it could remain a concern, Lam said.
Quanta is facing a less severe situation than other firms, given its large-scale production and prestigious customers, he added.
Lam said that Quanta should see continued revenue growth for the whole of this year, after revenue increased 2.41 percent to NT$1 trillion (US$36.08 billion) in the first 11 months, up from NT$981.04 billion for the same period last year.
Asked what he thought of the metaverse, Lam said Quanta is ready with augmented-reality and virtual-reality devices, and hopes to create more business opportunities through the 5G lab.
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