AI server ODM growth cooling

Taiwan’s biggest artificial intelligence server manufacturers are still growing fast, but March data show the pace is starting to cool. (digitimes.com) Original design manufacturers build servers for brands and cloud companies, while electronics manufacturing services firms assemble them at scale. In Taiwan, that group includes Hon Hai Precision Industry, also known as Foxconn, Quanta Computer, Wistron, Wiwynn and Inventec, which supply systems for Nvidia-based and custom artificial intelligence data centers. (digitimes.com, wiwynn.com) The first quarter was still strong by almost any measure. Hon Hai reported March revenue of NT$803.7 billion, up 45.57% from a year earlier, and first-quarter revenue of NT$2.13 trillion, up 29.68% year over year. (londonstockexchange.com) Inventec also hit a record in March, with revenue of NT$87.563 billion, and DigiTimes said the gain was driven by artificial intelligence server shipments. TVBS reported Taiwan’s artificial intelligence server makers posted exceptional first-quarter results as Nvidia GB300 systems began shipping to Amazon, Google, Meta, Microsoft and Oracle. (digitimes.com, news.tvbs.com.tw) What changed is the monthly pattern. DigiTimes said first-quarter growth remained exceptional, but the latest revenue reports suggest some manufacturers are moving from emergency capacity expansion to steadier factory use. (digitimes.com) That shift follows a year in which artificial intelligence servers remade Taiwan’s hardware sector. Taiwan’s Ministry of Economic Affairs said server production value from January through July 2024 reached NT$426.7 billion, already above the full-year 2023 total, as artificial intelligence server demand surged. (artificialintelligence-news.com) The spending behind that buildout is still large. DigiTimes said Taiwan’s listed artificial intelligence hardware companies generated about US$69.7 billion in March revenue across 13 supply-chain segments, up 63% from a year earlier. (digitimes.com) Company guidance also points to growth continuing, not reversing. Wistron said on March 13 that it expected 2026 revenue to rise by a high double-digit percentage, driven by artificial intelligence server demand tied to data-center construction by major cloud service providers. (taipeitimes.com) So the new signal is not a collapse in orders. It is that Taiwan’s artificial intelligence server industry is starting to look less like a scramble for any available capacity and more like a business settling into a very high run rate. (digitimes.com)