"Following a lackluster performance in the first half of 2015, the industry has witnessed a rebound in shipment volume since the third quarter of 2015 and the year-on-year growth is likely to continue well into the second half of 2016," says Pei-Fen Hsieh, senior industry analyst with MIC.

"Looking ahead to 2016, large ISPs will continue to have increasingly needs for application services and therefore their demand for data centers will sustain," explains Hsieh. "Despite so, global economic uncertainty is believed to still play a large part in affecting the adoption willingness of server systems and to what extent should merit further observation."

Figure I: Taiwan Server System and Motherboard Shipment Volume, 4Q 2013-3Q 2016 (Source: MIC, April 2016)