Taiwan makers have successfully entered the supply chain of the Internet data center (IDC) industry and may contribute over 90% of the global server shipments in 2014. Combined revenues from related product lines such as motherboards, back-end assembly, storage and telecommunication devices, are expected to reach NT$450 billion (US$14.94 billion) in the year, up 8.8% from 2013.
In 2014, three makers are expected to achieve over NT$100 billion in revenues from the server industry: Foxconn Electronics (Hon Hai Precision Industry), Quanta Computer and Inventec. Wistron, in fourth place, will also be able to achieve NT$50 billion for the year, Digitimes Research estimates.
In the next 2-3 years, with more mega IDCs to be established, Taiwan makers will continue to enjoy revenue growths. However, Taiwan makers will need to improve on their lack of global operation plans and service centers worldwide as the market will gradually expand into other regions as well as into the small-to-medium-size enterprise industry, according to Digitimes Research.