To meet the growing demand for computing power, cloud service providers are ramping up purchases of AI servers. However, suppliers in the electronic connection industry are finding it increasingly difficult to meet customer requirements without significant technological advancements, largely due to the high level of customization needed.
At the 2024 Smart and Sustainable Development Forum organized by the Taiwan Electronic Connection Association (TECA) on September 24, connector giant BizLink's president, Chien-hua Teng, addressed the challenges facing the AI server market. Despite mixed market reports, Teng emphasized that overall demand remains strong and is expected to stay robust for the foreseeable future.
Teng highlighted Nvidia's dominance in the AI server market, particularly with its DGX, MGX, and HGX platforms, which are highly customizable to suit various applications. This dominance puts pressure on connector suppliers to not only comply with Nvidia's standards but also offer tailored solutions for system makers and service providers.
The BizLink president further noted that high-speed transmission products require more than a one-size-fits-all approach. Companies must provide detailed and customized plans to address the specific needs of different users, while ensuring compatibility between products from various suppliers.
In addition to the challenges of customization, Teng pointed out that cooling requirements for AI servers, such as immersion and liquid cooling systems, have become critical. These cooling needs, coupled with the demand for high-speed data transmission, may necessitate design changes, material upgrades, or structural modifications, starting from the printed circuit boards (PCBs) of existing servers. This presents another technical hurdle for connector manufacturers to overcome.
As AI servers continue to evolve, Teng concluded that the need for simultaneous upgrades in the design and manufacturing of connectors and other electronic components is becoming essential for suppliers to remain competitive and secure orders in this rapidly advancing market.
Article translated by Willis Ke
