Quanta is looking for components that are not made in China to avoid issues concerning country of origin for its server shipments to the US in the wake of the US-China trade war. But most of Taiwan's components makers have shown little interest in reestablishing their local production capacity. Meanwhile, DRAM and NAND flash memory chips' spot market prices have been rising since the start of July, while their contract prices are expected to rebound at the end of the month.
Quanta seeking more non-China-made component sources: Quanta Computer has started seeking more non-China-made server components to avoid the possibility of being accused of using transshipments to avoid US tariffs, according to industry sources.
Most Taiwan components makers unmotivated about reestablishing local capacity: Taiwan-based components makers are mostly uninterested in reestablishing local production capacity despite server ODMs' wish they did so, as their business scales are not large enough to afford the costs of splitting manufacturing resources in different places, according to sources from the upstream supply chain.
Memory spot prices rebounding, contract quotes to rise in August: Spot market prices for DRAM and NAND flash memory chips have been on the rise since the beginning of July, and their contract prices may bottom out by the end of the month, according to industry sources.