Asustek Computer Inc (華碩) yesterday said it is building a server assembly line in the US to facilitate shipments of the large machines to customers in the region, as it seeks to tap into the rapidly growing artificial intelligence (AI) server market.
The efforts came three months after the company unveiled a grand strategy to accelerate its expansion into servers and artificial intelligence of things (AIoT) to explore new growth engines to drive revenue and profit.
The company has set an ambitious target to grow its new server business by 500 percent in the five-year period to 2027.
Photo: CNA
Asustek on Monday said that it was on track to reach that goal, given its long-standing partnership with Nvidia Corp and its advantages in component sourcing.
The company has activated a special project to build server assembly lines in San Francisco to supply its US clients, given the challenges of shipping such hefty machines, Jackie Hsu (許祐嘉), co-head of Asustek’s Open Platform Business Group and AIoT Business Group, said in a statement, confirming Nikkei Asia’s report.
It is also considering building server assembly capacity in regions beyond the US, said Hsu, who also oversees the new server business.
Asustek said it has secured a significant amount of orders to supply AI servers to clients in Vietnam, India and Singapore, thanks to its partnership with Nvidia.
As the AI server business is still in its infancy, Asustek expects the business to account for a low-single-digit percentage of the company’s total revenue next year. The revenue contribution would increase to a double-digit percentage in 2025 based on the company’s preliminary estimate.
Separately, Lenovo (聯想) has filed a lawsuit in California federal court, alleging that Asustek has infringed its patent, Reuters reported yesterday.
Hong Kong-based Lenovo said Asustek’s Zenbook laptops illegally used four of its patents related to wireless communications, diagonal touchpad scrolling and a hinge that allows laptops to convert to a tablet configuration, the report said.
Asustek said it cannot comment on the lawsuit, but it would comply with the law to safeguard the company’s interests.
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
RSS