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Taiwan's Server Shipments to Still See YoY Growth in 2H 2014 Despite Subdued Demand in 3Q

Published: Oct 23,2014

Shipment volume of the Taiwanese server industry, comprising of server systems and server motherboards, reached around 2.09 million units in the second quarter of 2014, up 7% year-on-year, according to MIC.

"Of the total servers shipped in the second quarter, the shipment ratio of server systems and server motherboards was 49.2% and 50.8%, respectively," said Shavonne Lin, the industry analyst with MIC.

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While the industry's shipment volume grew mildly in the second quarter, its shipment value growth stayed flat, reaching around US$2.39 billion in the same quarter.

Thanks to the increasing orders placed by Chinese white-box and homegrown vendors, Taiwan's server shipments lived up to expectations in the first quarter of 2014. In addition, as the second quarter has been traditionally the peak season for server systems, Taiwanese server shipments in the first half of 2014 therefore witnessed 4.2% year-on-year growth.

"For this reason, we can see that Taiwan's non-OEM/ODM server shipments had accounted for nearly 30% of total Taiwanese server shipments in the second quarter of 2014," said Lin.

Meanwhile, as enterprises always make server purchases for datacenters towards year-end, the second-half server shipments are predicted to be higher than the first-half ones. The ratio of server shipments in the first and second half of 2014 is estimated at 49% and 51%, respectively.

In the second half of 2014, Taiwan's server shipments are expected to top around 4.28 million units, up 4.6% in comparison to the same period of last year despite the sluggish demand in the third quarter.

Looking into the fourth quarter of 2014, shipment volume of the Taiwanese server industry is forecast to still witness over 10% year-on-year and sequential growth, according to MIC.

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