Cloud computing equipment supplier Wiwynn Corp (緯穎科技) yesterday said it expects artificial intelligence (AI) server shipments to grow in the second half of the year from the first half, driven by increasing demand for graphics processing unit and application-specific integrated circuit (ASIC) servers.
Meanwhile, shipments of general-purpose servers are expected to be flat in the second half, Wiwynn CEO and president William Lin (林威遠) told reporters after the company’s annual shareholders’ meeting.
The company expects to start shipping its first batch of AI servers powered by the Nvidia Corp GB300 chip in August at the earliest, likely from a new factory in Texas in a bid to mitigate impact from tariff uncertainty, Lin said.
Photo: CNA
Wiwynn is also seeking opportunities from another camp, servers powered by ASICs or customized AI accelerators built by cloud service providers, as chip technology has matured, Wiwynn chairwoman Emily Hong (洪麗甯) said.
Despite the positive server prospects, Hong said the company remains cautious about US tariff uncertainties and the sharp appreciation of the New Taiwan dollar against the US dollar.
Every NT$1 rise in the NT dollar against the greenback would cut Wiwynn’s revenue by 3 percent and reduce operating margin by 0.05 percentage points, Hong said.
Overall, the foreign exchange rate issue is still manageable, as the company has boosted its hedging tools against foreign exchange volatility, she said.
To minimize the impact from the tariff uncertainties, Wiwynn said about 70 percent of its servers exported to North America are made in Mexico, given the country’s preferential tax status under the US-Mexico-Canada Agreement and Section 232 of the US Trade Expansion Act of 1962.
The company could be flexible about manufacturing site shifts depending on changes in US tariff policies, she said.
Aside from Taiwan and Mexico, the company has factories in the Czech Republic and Malaysia.
Shareholders yesterday approved the company’s plan to distribute a cash dividend of NT$74 per share, the highest in the company’s history.
That represented a payout ratio of 58.5 percent based on the company’s earnings per share of NT$126.57 last year.
HSBC Holdings PLC is deepening its commitment to Taiwan as the economy emerges as one of the bank’s fastest-growing markets globally, driven by an artificial intelligence (AI) investment boom, expanding cross-border trade, and rising wealth creation. “The advantage that Taiwan has is a growth story linked to the semiconductor and broader AI industries, strong underlying corporate performance, and wealth creation,” said Surendra Rosha, HSBC’s co-chief executive for Asia and the Middle East, in an exclusive interview with the Taipei Times on June 2, during this year’s HSBC Taiwan Conference. That combination has helped HSBC cement its position as the most profitable international
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
Hon Hai Precision Industry Co (鴻海精密) yesterday said it would work with US chipmaker Intel Corp to jointly develop and deploy next-generation artificial intelligence (AI) infrastructure and intelligent computing platforms in a move to capture booming demand for AI computing systems. Hon Hai, also known as Foxconn Technology Group (富士康), said in a statement that the partnership would combine its global manufacturing scale, system integration expertise and AI data center deployment capabilities with Intel’s strengths in processor architecture, silicon technologies and software ecosystem. The companies said they plan to work on equipment used in AI data centers, including server racks powered by
RSS