Digitimes Research: Taiwan server revenues expected to grow 5.9% on year in 2017

Betty Shyu, DIGITIMES Research, Taipei 0

Because of rising demand for cloud computing, shipments of server and rack products have increased, and revenues at Taiwan's server motherboard, storage and network equipment players grew 4.8% on year to reach around NT$559 billion (US$18.38 billion) in 2016, and will grow another 5.9% on year in 2017.

Worldwide server shipments grew 5.1% on year to reach around 11.5 million units (based on the number of motherboards) in 2016 and are expected to grow 3.7% on year to reach nearly 12 million units in 2017. Cloud computing server shipments will continue enjoying growth, while shipments from traditional server brand vendors will suffer from declines. Since servers using Intel's next-generation Purley platform will enter mass shipments in 2018-2019, worldwide server shipments are estimated to grow over 7% on year in 2018, according to Digitimes Research's figures.

Server shipments from Taiwan grew 4.9% on year in 2016, surpassing 10 million units and will continue to grow another 4-5% in 2017. Wistron's shipments including the volume from Wiwynn are also expected to surpass those of Inventec to become the largest player in Taiwan in 2017.