We’re moving from China to Taiwan, Asia-South Asia and North America to the US, and thus the US has a recollection of server production


According to the DigiTimes resource, the trade war between the United States and China, lacarbonization and geopolitical factors caused the acheive of partial transfer from China to Taiwan, Southeast Asia and North America. For the same reasons, Network World notes that using data from trendforce analysts, supply chains have shifted. Today, this process didn’t begin but again.

DigiTimes Research estimates that in 2022 almost 60% of the servers in the world will be made in China. However, before the start of the trade war, this figure was about 70-80% higher. According to analysts forecasts, China’s share in global server production could fall to 35 % by 2024. Consequently, the output will continue to increase in Southeast Asia and North America. In 2022, the total server volume of 194 ml was cut to 16 percent. By 2024, the share will increase to 15-20%.

Today, major server manufacturers such as Amazon, Microsoft, Google and Meta* have the largest market in North America, and it makes sense to move some production lines into this region as well as Mexico, say experts. Inventec and Quanta Computer have already transferred some of their capabilities to Taiwan. Quanta Computer and Wiwynn also decided to move several production lines to Thailand and Malaysia respectively. Foxconn is deciding whether to manufacture servers in Vietnam. Vianda also attracts manufacturers of network equipment.

Taiwanese ODMs today ship 90% of all the global server motherboards, TrendForce estimates. The exception is Supermicro, which, as well as Taiwanese enterprises, operates a factory in Fremont (California, USA). In this situation, many companies are making their business decisions. AWS, Google, Meta*, and Microsoft are considering using server production lines outside Taiwan as a precaution.

* In the list of public associations and religious organizations in respect of which the court made the decision to abandon or interdite people activities on the grounds of the Federal Code No. 114-FZ of July 25, 2002 and on the grounds of countering extremist activity, included in the list.

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