[News] AI Server Makers Wistron and Wiwynn Stay Hot in Q4, Fueled by AI Shipment Surges

2023-11-09 Semiconductors editor

Wistron experienced a slowdown in shipments for product lines like PCs and displays in October, following the prior demand surge. However, their GPU-related AI server products continue to maintain their growth trajectory. Simultaneously, Wiwynn, a subsidiary of Wistron, witnessed a remarkable 20% month-over-month revenue increase due to the rising momentum in AI server-related project shipments, positioning them at the third-highest monthly revenue level in their history for the same period, reported by CTEE.

Both Wistron and Wiwynn hold an optimistic outlook for their AI server products, expecting the growth momentum to extend into the next year. In contrast, they foresee a return to growth trends for non-AI general-purpose servers and cloud data center servers next year, while AI server growth is expected to remain notably strong.

Wistron plays a pivotal role in the AI server supply chain and remains unaffected by high-end GPU shortages and U.S. export restrictions. Shipments in Q4 continue to exhibit consistent month-to-month growth, and the anticipated trend to peak in the second half of the year remains steadfast. Moreover, there are indications of a slight seasonal increase in general-purpose servers in Q4.

In a recent earnings call, Wiwynn maintains an optimistic stance for Q4 and the upcoming year. With the evident growth momentum from AI servers, they anticipate that developments in AI-related projects will lead to a continuous improvement in AI server product shipments.

Furthermore, Wiwynn’s third-largest customer business and AI server revenue both exceeded 10% in the third quarter, marking a significant milestone for the company. Back in October, Wiwynn had set up  a server plant in Malaysia to meet the surging demand for AI servers.

According to TrendForce’s anticipation, in 2023, the shipment of AI servers (including those equipped with GPUs, FPGAs, ASICs, etc.) is expected to exceed 1.2 million units, with a year-on-year increase of 37.7%, accounting for 9% of the total server shipments. In 2024, it is projected to further grow by more than 38%, with shipments reaching approximately 1.676 million units, and the share of AI servers will exceed 12%.
(Image: Wistron)

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