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 Hwang (黃承德) said.
In terms of product strategy, the company has expanded into cluster-level solutions in pursuit of better margins, Hwang said.
The company provides AI servers, high-performance computing servers and multi-node servers, while also developing liquid and air-cooling AI rack solutions, Hwang 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, Hwang 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.
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