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keyword:Mark Liu33 result(s)

Press Releases
Server Shipments Fell Short of Expectations in 1H19 Due to Relocation of Production Lines That Supply Data Centers, Says TrendForce

2019/09/09

Semiconductors

TrendForce’s latest analysis of the server market finds that the global demand was noticeably lower than usual during 1H19 on account of the escalation of the US-China trade dispute As the market enters the second half of the year, the replacement demand associated with the migration to the latest server processor platforms has yet to pick up significantly Moreover, the demand from customers in China’s data center market is still rather uncertain On the other hand, shipments from ODM direct businesses in the US to North America’s data center market is expected to maintain robust growth during the year’s second half The growth from this end will compensate for the other factors that negatively affect the overall demand Consequently, this year’s global server shipments will be roughly on par with the level of the previous year Mark Liu, senior analyst at TrendForce, has this to say about the effect of the US-China trade dispute on the overall server production: “While the trade negotiation between the US and China is at an impasse, ODMs have already taken precautionary measures Most of them started to move production lines out of China as early as 2018 However, the entire supply chain still felt the disturbance of the relocation process in 1H19; and this, in turn, also had some impact on the procurement demand from the data center market during the same period ODM partners of Microsoft Azure, Google, and a few other cloud service providers in the US have moved their L6 lines to Taiwan as requested by their clients The issue is that the production yields from these lines have dropped following their relocation, leading to downward corrections in shipments We expect that the yield rates of the relocated L6 lines will not return to their normal levels until the end of this year or perhaps even later in 2020 It is also worth mentioning that most of the production lines that supply AWS and Facebook are still in China Since these two major clients are willing to absorb the costs associated with higher tariffs, server shipments destined for them will remain steady throughout this year” Server shipments in China are expected to drop slightly this year due to the US export restriction TrendForce currently projects that the total annual server shipments in China for 2019 will drop by about 4% YoY because of the effect of the US export restriction on certain major Chinese suppliers to data centers (eg Huawei and Sugon) Customers in the data center market have gradually diverted their orders to alternative suppliers such as Inspur Despite the trade frictions between the US and China, most of the enterprises that build and operate large-scale data centers still use China-made servers Among the top five server manufacturers by shipments for this year, Inspur will be the only one to post a positive YoY growth with the rate currently estimated around 10% The current outlook of the whole server market indicates that the scale of server shipments worldwide in 2019 will be close to that of 2018 North American OEMs are again the main growth contributors, and they are expected to account for around 40% of the total shipments in 2019 From the perspective of market segments, enterprise servers still command the majority market share However, suppliers catering to this segment are facing shrinking demand as businesses are increasingly relying on cloud services Looking ahead, much of the demand will shift toward the kinds of servers used in large-scale internet data centers Also, the forthcoming rollout of the 5G network will trigger another wave of procurement from the telecom industry and cloud service providers Hence, TrendForce forecasts that hyperscale servers deployed in data centers owned or leased by cloud service providers and telecom companies will account for nearly 33% of the total annual shipments for 2019 This share figure is expected to reach the 40% level in 2020

Press Releases
Server ODMs Add Taiwan Production Lines, yet the Economic Benefits May Not Be on Par with China Manufacturers, Says TrendForce

2019/07/03

Semiconductors

According to the latest investigations by DRAMeXchange , a division of TrendForce , although the US and China have reopened trade negotiations, US server-related imports from China still face a 25% tariff, thus server ODMs will still add production lines in Taiwan as scheduled to avoid risks North American Internet Service Providers (ISPs) such as AWS and Microsoft have already begun requesting collaborating ODMs to move their L6 (Level 6) server production lines to Taiwan to avoid potential tariff costs, whereas production plans for products shipped to non-US regions will remain as is TrendForce Senior Analyst Mark Liu points out that, judging from the operations of major server ODMs, we see them all establishing new production lines on Taiwan soil, with Inventec, Wiwynn and Quanta being the most aggressive at it Inventec, for example, has already added two new production lines in Guishan, Taoyuan by the end of 2018, whereas Wiwynn has already introduced a new production line for its plant at Southern Taiwan Science Park last year, thanks to the addition of two new customers, and is expected to set another production line into motion this second half-year in conformity with plans to ramp up production next year Quanta's goal is to add 3 new L6 server production lines in order to meet the future demands of 5G-related applications and datacenter growth, whereas MiTAC's goal is to expand the plot ratio of its Hsinchu plant so as to nullify the tariffs' effects on L6 products for customers TrendForce believes that production lines located in Taiwan won't be achieving a high line-coverage rate, mainly since issues in testing and yield can't be completely resolved in the short term Therefore, Taiwan ODMs will still rely on China for motherboard manufacturing , but some production lines will be moved back to Taiwan in order to lessen the effects of tariffs on shipments bound for certain North American customers, who will bear some of the costs incurred in plant relocation There are currently a few ODMs avoiding tariffs through transshipments : Quanta, for example, ships its L6 servers to Taiwan, then to America after converting them to L7 servers Although there's an additional shipment cost, it will still be cheaper than relocating production lines In the long-term, even after adding tariff costs, it is still more economically beneficial to manufacture in China, thus the motherboards and L6 production lines will still be located primarily in China, while Taiwan's share of lines will gradually increase to between 20% and 30% and revolve around the production of products with high added-value (Such as turnkey solutions for IDC customers in North America)

Press Releases
Worldwide Server Shipments to Peak in 2020 Due to Business-Transforming 5G Technology, Says TrendForce

2019/04/22

Semiconductors

According to  DRAMeXchange  , a division of  TrendForce  , the global server market is predicted to continue growing in 2019, but under the pressures of business cycles and worldwide uncertainty, this year's server shipment growth has shrunk slightly compared to 2018, coming to 39% DRAMeXchange Senior Analyst Mark Liu points out that, upon analyzing the market, worldwide server growth momentum in 2018 mainly derived from North American brands, which comprised over 30% of total shipments Category-wise, enterprise servers still form the largest shipment group, while the share of shipments toward internet datacenters is growing year by year, growing from 35% in 2018 to 40% in 2019 As 5G begins to transform businesses, telecommunications companies and internet providers will increase in their demand for servers Predictions are that server shipments will peak in 2020 Looking back at the first season this year, datacenter demand was relatively unaffected by the traditional offseason, as total shipments continued to experience stable growth ODM direct business shipments grew by 13% compared to the previous season As orders continue to arrive in the second season, we may still see seasonal growth of around 1%-3%, bringing market shares up to 266% Brands were hit by the offseason in the first quarter, with their shipments falling by over 20% compared to last quarter, but the market made a notable recovery entering the second Looking at the global market share rankings of server brand manufacturer in 2H19, we see Dell EMC, HPE (including H3C) and Inspur taking the top three spots, with market shares of 158%, 137% and 75%, respectively Worth mentioning is that China's top cloud service providers will drop by about 15% YoY in server purchases this year, while North American companies will be less affected, their purchases projected to keep growing by 5%-10% As for second-tier companies such as China's Bytedance and North America's NetApp, this year's server purchases will grow by over 40% compared to last year, thanks to overseas business development and self-built datacenters contributing to demand

Press Releases
Server DRAM Contract Prices to Fall by Over 20% QoQ in 1Q19 Due to Difficulties in Reducing Inventory, Says TrendForce

2019/01/21

Semiconductors / Consumer Electronics

Contract prices of server DRAM are expected to fall by more than 20% QoQ in 1Q19, steeper than the previous forecast of 15%, reports DRAMeXchange, a division of TrendForce The demand outlook remains weak due to high inventory levels and seasonal headwinds Moreover, uncertainties brought by the China-US trade war would also lead to conservative demand According to Mark Liu, senior analyst at DRAMeXchange, the main reason for steeper price fall lies in the difficulties in reducing inventory The DRAM suppliers’ fulfillment rate has improved from 90% in 4Q18 to 120% in 1Q19, indicating an oversupply in the market Currently, the major operators of data centers in North America are holding fairly high levels of server memory inventory that can cover the usage for at least 5 to 6 weeks, while OEMs’ current inventory can cover around 4 weeks Based on the previous production plans of the companies, their inventory levels have apparently doubled the normal levels or even higher In terms of demand, after enjoying two years of strong demand growth for server systems, the server DRAM market is now seeing a tapering of its own demand growth Demand from the upgrade to Intel’s Purley platform has started to wear off; memory component orders have also been fulfilled; a pessimistic economic outlook and uncertainties brought by China-US trade war may also affect the DRAM market As the general demand outlook becomes more conservative in the first half of this year, data centers and other server DRAM clients are anticipating falling prices in the future and are thus less keen on stocking up on memory components On the supply front, major DRAM suppliers plan not to expand their production capacity actively this year in the fear of worsening market outlook They also slow down the migration to advanced processes and high-density chips (eg, 16Gb mono die), trying to offset the oversupply In order to reduce the inventory faster, suppliers have started to negotiate DRAM contracts as monthly deals since 4Q18, instead of quarterly ones The quarterly lock-in deals have changed into quantity-based bargains, due to capacity expansion and increasing pressure from sales With the emerging trend of build to order and low price, contract prices of DRAM products would continue to slide On the whole, DRAMeXchange believes that the demand for servers will recover since 2Q19, with increased shipments to Chinese data centers and branded server makers worldwide If the inventory problems are properly solved, server DRAM price decline may be moderated in 3Q19 and 4Q19, bringing the annual price fall to almost 50%

Press Releases
Global Server Shipments to Grow by 5% YoY in 2018, but Growth May Slow Down in 1H19, Says TrendForce

2018/12/20

Semiconductors / Consumer Electronics

According to the latest report by DRAMeXchange, a division of TrendForce, the global server market has continued to grow in 2018, with the total shipments estimated to reach 1242 million units, a YoY growth of around 5% Dell EMC, HPE (including H3C), and Inspur will be the top three server suppliers with the shipment market shares of 167%, 151%, and 78% respectively According to Mark Liu, senior analyst at DRAMeXchange, the growth of global server market is mainly driven by branded server suppliers in North America, who contribute to more than 30% of the global server shipments As for the percentage breakdown by types of server, enterprise servers account for the majority of the global shipments while the percentage of servers used for Internet data center grows to nearly 35% The continued growth is because demand from Internet data centers is less seasonal The YoY growth rate of the ODM direct business in North America reached 17% in 1H18 and is forecasted at 12% in 2H18 The growth is moderated in the second half of the year due to adjustments in stocking and slowdown in CAPEX Over the past year, brands experienced a noticeable recovery in 2Q18 with more than 10% QoQ growth in global server shipments, after a slight decline in 1Q18 due to seasonal headwinds In 3Q18, the shipments peaked at 32 million units Looking ahead to 2019, the shipment growth is expected to slow down to 2% in the first half of the year, as the stock-ups for migration to the latest processor platform began earlier than expected and have approached the end by 2018, so brands tend to be conservative about new market deployment In the second half, the market may have new demand momentum after new platforms like Gen2 from Intel and Rome from AMD come out North American server brands would register strong performances driven by cloud computing and commercial server market In the ranking of global server shipments, North American companies still occupy the top places with outstanding performances Dell EMC and HPE, which take the first and second places respectively, still dominate the market of commercial servers It is worth mentioning that, with the emergence of cloud computing, Dell EMC has taken a place in the global cloud infrastructure market, with a share of 10% The company will continue to increase the share of storage servers in its product mixes However, HPE, which is more profit-oriented, has stopped selling servers for low-gross-profit hyperscale server infrastructure Instead, it has turned to enterprise integration and hyper-coverage solutions to increase revenue Inspur ships nearly one million servers, Huawei increases its server shipments by 20% Inspur's global shipments have risen significantly to nearly 1 million units, with almost 30% of which shipped to the Chinese market This is because the government has been encouraging Chinese companies to adopt servers made by domestic brands, together with increasing orders form data centers A majority of Inspur’s ODM business and server orders comes from internet companies in China, especially tier-1 companies like Baidu, Alibaba and Tencent Together with orders from tier-2 companies like Toutiao, Meituan, Didi, and JD, Inspur still has orders coming in during the second half of this year DRAMeXchange expects that Inspur’s strategic plan for the next year will focus on developing new customers, especially those in North America Huawei registered a record YoY growth of 20% in shipments due to stable orders from telecom operators Around 70% of the servers shipped by Huawei are sold to the Chinese market, and the rest are sold to European carmakers and telecom operators’ server (5G and telecom server) and data center construction

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