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No.1 in the Servers Shipment? Foxconn: No Comment

By Vincent Wang
Published: Sep 17,2014

TAIPEI, Taiwan — Taiwan's servers have occupied 80 percent of the market share worldwide, Foxconn grabbed the chance and became a supplier of an American information center. Foxconn also teamed up with Hewlett-Packard (HP) to establish a servers business group in a bid to penetrate the Chinese market. Foxconn has already become the biggest servers provider in Taiwan, left Inventec and Quanta behind.

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However, Foxconn is declined comment on it.

According to Market Intelligence & Consulting Institute (MIC), a Taipei-based ICT research institute, the global servers market is around 9 to 10 million per year, in terms of the amount, Taiwan ranked 80 percent in 2013. It's a bullish trend in 2014 and 2015, which means that Taiwan is the kingdom of servers.

Not only aiming at those branded product orders, Taiwanese firms regards the prospects of the white goods favorably, especially those are associated with Internet service-oriented information center.

As the rising of white goods in servers industry, the top three information center providers HP, IBM, and Dell have their market share shrunk to 60 percent from 70 percent.

Moreover, global semiconductor market value is estimated to reach approximately US$336.3 billion units in 2015, up 3.1 percent in comparison to 2014, delighted by the arrival of the Apple Watch and IOT (Internet Of Things) devices, according to MIC, shipment value of Taiwan's semiconductor industry will grow 6 percent year-on-year, higher than the global average, and reach around NT$2.2 trillion (US$70 billion; US$1 = NT$30.2).

Taiwanese semiconductor makers' increased shipments of mid-to-lower-end smartphones, new smart handheld devices and smart wearables shipped for international brands are argued to be the main factors driving the industry.

MIC estimates that, driven by the buoyant demand for downstream end- products such as smartphones, global semiconductor market volume is estimated at US$326.2 billion in 2014, up 6.7 percent year-on-year. Meanwhile, shipment value of Taiwan's semiconductor industry will top around NT$2 trillion (US$70 billion) in 2014, up 16 percent year-on-year.

“The pick-up in replacement demand for commercial personal PCs, continued strong sales of mid-to-lower-end smartphones, and increased share of advanced manufacturing and high-end packaging processes are three factors helping Taiwan's semiconductor industry maintain strong momentum,” said Chris Hung, Director and Industry Consultant with MIC.

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