Wiwynn Corp (緯穎), one of the biggest makers of Nvidia Corp servers, yesterday warned of shortages developing in vital data center components beyond just memory chips, potentially slowing or inflating the cost of a global artificial intelligence (AI) infrastructure buildout.
Wiwynn chairwoman Emily Hong (洪麗寗) expects demand for data center hardware to remain red-hot over the next three to five years, as the likes of Meta Platforms Inc and Microsoft Corp escalate capital spending.
However, that race to secure essential components from memory to networking chips is propelling hardware prices to record highs. It is hard to pin down where crunches would emerge, given a constant race to expand production capacity.
Photo: CNA
“The items that are in short supply are somewhat different every year,” Hong told Bloomberg News yesterday. “We may start to see some relief in constraints in late 2027 or 2028.”
Hong joins fellow industry figures in warning about demand-supply imbalances. The executive, whose firm competes with Hon Hai Precision Industry Co (鴻海精密) and Quanta Computer Inc (廣達), often joins what’s dubbed “The Trillion Dollar Banquet:” a regular dinner hosted by Nvidia CEO Jensen Huang (黃仁勳) when he visits his Taiwanese partners.
Wiwynn is now generating more than 80 percent of its sales from US customers, Hong said.
The US would be a key location for expansion over the next few years, although she did not provide a specific number for investment.
Wiwynn’s first plant in El Paso, Texas, is already up and running, and it is planning to ready another three in two years’ time, Hong said.
The company has been able to secure sufficient power supply, which is critical for assembling AI server racks in the Lone Star state, she added.
The Taiwanese company is exploring ways to raise capital for expansion — not just in the US, but also back home.
Hong, who spoke with Bloomberg News during a joint interview with Taiwan Stock Exchange chairman Sherman Lin (林修銘), said the US$2 billion of convertible bonds the company issued in March would not cover its capital expenditure requirements over the next several years.
WiWynn might try to raise more funds next year, primarily utilizing global depositary receipts and convertible bonds, she said.
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