MiTAC Holdings Corp (神達控股) yesterday said it expects positive revenue growth momentum this quarter and for rest of the year, driven by continued robust demand for artificial intelligence (AI) applications and data centers amid strong client front-loading momentum.
Growth momentum for this year is “without a doubt,” especially as most demand is not coming from one-time orders, but reflects long-term growth trends, MiTAC president Billy Ho (何繼武) told an investors’ conference.
MiTAC Holdings Corp comprises subsidiaries including MiTAC Computing Technology Corp (神雲科技), which manufactures servers and storage devices, as well as MiTAC Digital Technology Corp (神達數位) and MiTAC International Corp (神達電腦).
Photo: Fang Wei-chieh, Taipei Times
Last quarter, MiTAC Computing accounted for 90.1 percent of MiTAC Holdings Corp’s total revenue of NT$31.86 billion (US$1.01 billion), followed by MiTAC Digital Technology Corp at 7.8 percent and MiTAC International at 2.1 percent.
MiTAC Computing is seeing strong growth momentum, as capital spending by major cloud service providers (CSPs) on AI-related applications is expected to reach US$700 billion this year, Ho said.
AI-related demand is expected to continue growing and boost the company’s revenue in the coming years, he said.
This year, despite geopolitical challenges, MiTAC has still seen continued growth in orders from hyperscalers, CSPs and neocloud clients, he said.
The AI industry is gradually shifting from large-scale training to large-scale inference applications, with inference demand expected to account for a growing share of the market going forward, MiTAC Computing president Rick Huang (黃承德) said.
In terms of product strategy, the company has expanded into cluster-level solutions in pursuit of better margins, Huang said.
The company provides AI servers, high-performance computing servers and multi-node servers, while also developing liquid and air-cooling AI rack solutions, Huang said.
MiTAC Computing is to showcase at Computex Taipei next month next-generation high-density liquid-cooling rack solution that is capable of supporting demand for higher graphics processing unit density amid the rapid upgrade trend in AI data centers, he said.
Demand for liquid-cooling solutions has increased significantly, with most newly built AI data centers now designed around such systems to meet rising thermal demand, he said.
MiTAC’s primary manufacturing bases are in Taiwan and China. Its new factory in Hanoi, Vietnam, began mass production this quarter, while two new US factories are scheduled to begin operations next quarter. Its Mexico operations are also continuing to expand, Ho said.
The expansion is to strengthen MiTAC’s supply chain resilience and manufacturing flexibility, he said.
However, this year’s operations still face pressure from shortages and rising prices of key components, including DRAM chips, solid-state drives and CPUs, Huang said.
The most important issue now is whether the company can secure sufficient key components and complete shipments on schedule, as this would directly affect gross margins and operating performance, he said.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
Netherlands-based semiconductor equipment supplier ASML Holding NV yesterday said that it is planning to hire an additional 1,000 people in Taiwan this year in response to growing demand from clients. ASML had previously planned to recruit 600 people this year, but that the plan has been adjusted upward, ASML vice president and ASML Taiwan general manager Grace Wang (汪佳慧) told reporters. ASML has a workforce of more than 4,500 in Taiwan, accounting for about 10 percent of its global total, Wang said. This year’s recruitment campaign would focus on adding people in the customer support, manufacturing and supply chain domains to assist ASML
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Nvidia Corp yesterday announced that CEO Jensen Huang (黃仁勳) would attend an employee meeting in Taipei tomorrow to celebrate the launch of the company’s Taiwan headquarters project. Huang would attend a gathering at the site of Nvidia’s planned headquarters in Beitou Shilin Technology Park (北投士林科技園區), the company said in a statement. After arriving in Taiwan on Saturday last week, Huang told reporters that he plans to meet with Quanta Computer Inc (廣達) chairman Barry Lam (林百里) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman C.C. Wei (魏哲家), and would attend the groundbreaking ceremony for Nvidia’s Taiwan headquarters tomorrow. Nvidia has not yet applied
RSS