Notebook-use heat-dissipation module makers, including Taiwan-based Auras Technology, Sunonwealth Electric Machine Industry, Asia Vital Components and Cooler Master as well as Japan-based Furukawa Electric, are extending production to models for use in servers which is likely to trigger a price war, according to Taiwan-based thermal module makers.
With weak visibility in the notebook market, thermal module makers have been aggressively crossing into non-notebook segments to seek new business opportunities.
Although server brand vendors are unlikely to shift a significant number of existing thermal module orders to new partners in the short term, they are expected to demand price cuts from their existing partners.
Facing fierce competition from players such as Quanta Computer and Wiwynn, Wistron's server subsidiary, server brand vendors are optimistic about new component makers joining the market as it will help reduce risks over supply and their purchasing costs.
In addition to thermal module makers, power supply, chassis and cable makers have also been aggressively trying to enter the server supply chain. Some market watchers expect competition to peak in 2017, when Intel updates its server product line with new CPUs.
Article translated by Joseph Tsai
