Taiwan's server chassis specialist Chenbro Micom continues to see a stable surge in customer orders for the second half of 2022 and is guardedly optimistic about its overall revenue results for the entire year, according to company president Corona Chen.
Chen said her company has landed orders for the entire third quarter, and order momentum will keep strengthening in the fourth quarter. She stressed that while consumer electronics demand remains sluggish, the growth of the server sector still shows no signs of slowing down, and estimated Chenbro's revenues for the second half of 2022 to be higher than the first half, and sales for the entire year will also grow from 2021.
Chen said datacenter server clients have yet to reduce or defer shipments pull-ins, as datacenter services are badly needed no matter how bad consumer market conditions will be.
Actually, brand server vendor Lenovo and system assemblers Wiwynn and Quanta Computer also shared the view that major datacenter operators will continue their hardware equipment installations though their advertising incomes associated with cloud services are not as good as before, according to industry sources.
In response to Intel delaying the launch of new server processors, Chen opined that the delay will impact more on suppliers of motherboards than on makers of server chassis and other mechanical components, as clients still can adopt processors from AMD or Arm.
Chen cited the latest research data showing Intel's global market share for server processors has declined to 88% from the past peak of 97-99%, and AMD's has advanced to 8-9%. She continued that major server clients tend to incorporate processors from Intel, AMD or Arm into their product lines, and some are even developing customized processors on their own to diversify risks.
Besides two existing plants in China, Chen disclosed, Chenbro's new plant in Chiayi, southern Taiwan has started volume production since the start of 2022, with monthly capacity to increase to 80,000-100, 000 pieces by the end of the year. She also said the company is planning to set up manufacturing operations in the US in the future to better serve clients there.
Chenbro has reported its second-quarter 2022 revenues grew 33% sequentially and 19% annually to NT$2.78 billion (US$92.66 million) and net profits rose 55.8% on year to NT$280 million. Its January-June sales increased over 17% on year to NT$4.87 billion, with net earnings jumping 32.8% annually to NT$400 million.