As more server makers and brands are relocating production lines from China to Taiwan or establishing new manufacturing facilities in the market, Taiwan's role in the server industry has grown more important. Meanwhile, the uprising demand for datacenter servers will continue benefiting Taiwan-based PCB makers in the second half of 2020 despite the upstream supply chain rumor about witnessing datacenter clients decelerating their order pull-ins. Memory ASPs have been declining throughout the second quarter and may have a chance to resume growth in the fourth quarter.
Taiwan emerging as new server manufacturing hub: Taiwan is set to become a new manufacturing hub for servers, as Supermicro, Quanta Computer, Wiwynn and others as well as related components makers are fast expanding production capacity to meet growing demand from datacenters and enterprises, according to supply chain sources.
PCB orders for datacenter servers to stay robust in 3Q20: In response to the upstream supply chain rumor claimed that several key datacenter players have slowed down the pull-ins of their server component order recently, sources from PCB makers said that they have not seen any deceleration in orders from datacenter clients for the third quarter of 2020.
Memory ASPs falling in 2Q20, likely to rebound in 4Q20: Overall ASPs for memory are trending downwards in the second quarter of 2020 along with spot market price falls despite rises in contract prices, but they are expected to resume growth momentum in the fourth quarter of the year, according to Gerry Chen, general manager of memory modules maker Team Group.
