Cloud computing equipment supplier Wiwynn Corp (緯穎科技) yesterday said that order momentum for artificial intelligence (AI) servers is expected to extend into next year and beyond, driven by rising demand for graphics processing unit (GPU) and application-specific integrated circuit (ASIC) servers.
“We are very optimistic about next year’s business and confident that this year will see immense annual growth, as revenue has already expanded more than 200 percent at this stage,” Wiwynn chairwoman Emily Hong (洪麗甯) said on the sidelines of an event in Taipei.
Wiwynn’s revenue in the first eight months of this year was NT$571.9 billion (US$18.8 billion), up 171.8 percent from a year earlier.
Photo: CNA
The company’s performance last quarter also exceeded expectations, Hong said, attributing it mainly to ASIC-powered servers.
Revenue contribution from Nvidia Corp’s GPU-powered servers is expected to increase next year, she said.
As companies such as Nvidia, OpenAI and Oracle Corp expand investment in AI, demand for the company’s products is expected to continue rising next year, Wiwynn CEO and president William Lin (林威遠) said.
To cope with the strong order momentum for its AI servers, the company has also been building plants in the Southern Taiwan Science Park (南部科學園區) in Tainan, as well as in Mexico and the US, Lin said.
Wiwynn acquired land and facilities in Texas in May. It bought another plant there for US$72.8 million, which it had previously leased, the company said in a regulatory filing on Wednesday.
Both plants are scheduled to begin operations later this year or next year, but the company is still on the lookout for new sites to expand its manufacturing capacity, he said.
Wiwynn has also increased capacity in Mexico, as the Mexican plant is not subject to tariffs under the US-Mexico-Canada Agreement and has maintained stable production, Hong said.
About 70 percent of its servers exported to North America are made there, the company said earlier.
With power supply in northern Taiwan remaining tight, Wiwynn has relocated energy-intensive equipment to Tainan and is seeking plant sites without such issues, she said.
Regarding media reports that Washington hopes Taiwanese firms would help build high-tech parks in the US, Lin said it would benefit supply chain manufacturers to stay close to one another.
Wiwynn yesterday held a groundbreaking ceremony for the construction of a new headquarters in Taipei’s Neihu District (內湖), with construction slated for completion in 2029.
The center is to serve as Wiwynn’s operations, and research and development hub, with eight above-ground floors, four basement levels and a total floor area of 8160.01m2, it said.
The company last year signed a lease with the Taipei City Government to secure five plots of land and superficies for 60 years for the center’s construction.
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