Electronics manufacturing service provider Pegatron Corp (和碩) yesterday said revenue from its artificial intelligence (AI) server business is expected to grow by a triple-digit percentage this year, following a surge last year of those proportions driven by demand for AI applications.
Pegatron’s AI server business has entered a phase of rapid expansion, company co-chief executive officer Gary Cheng (鄭光志) told reporters at a company event.
In addition to its graphics processing unit-based server shipments, such as Nvidia Corp’s GB200 and GB300 models, Pegatron is also expanding into the design and production of inference servers and application-specific integrated circuit (ASIC)-based systems, Cheng said.
Photo: CNA
The firm is cooperating with several major customers in the inference area, with contributions expected to begin materializing in the second half of this year, he said.
Pegatron’s AI server customer base includes major cloud service providers (CSPs), small and mid-sized data centers, as well as enterprise customers, he said.
Training-focused projects typically generate greater revenue and are better suited to its capabilities, Cheng said, adding that the firm plans to step up deployments with large CSPs this year.
While the company has secured orders to make ASIC-powered servers, with shipments expected to begin this year, the projects would mainly focus on transformer-based training and inference applications, Pegatron co-chief executive officer Johnson Teng (鄧國彥) said.
ASIC projects differ from traditional server business, as some customers design their own AI chips and act as system solution providers, Teng said.
As a result, Pegatron’s role extends beyond board-level manufacturing to full system integration, including high-end “Level 10” and “Level 11” servers, as well as thermal and liquid-cooling solutions, which places greater demands on supply-chain coordination, Cheng said.
In the small and medium-sized enterprise and enterprise segments, Pegatron early last year secured a major Taiwanese customer and has seen steady progress in related projects, he said.
Pegatron’s new facility in Mexico, which is to focus on AI server production, entered trial production at the end of last year and is ready for mass production, he said.
Construction of a company plant in Texas is expected to be completed by the end of March, with trial production to begin soon, he said.
In Taiwan, the company last year built two new plants in Taoyuan, which are to begin production this year, Cheng said.
As local production in the electric vehicle (EV) sector becomes more pronounced across North America, as well as China and the rest of Asia, Pegatron has allocated most of its local EV product production to Mexico and North America to avoid high tariff requirements, Cheng said.
The company aims to maintain double-digit growth in its EV business this year, he said.
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