AI servers/chips are booming, and Taiwan IT factory revenue has seen the largest growth in 18 months

2024/05/17

Financial News

May 16, 2024

Author MoneyDJ

Strong demand for AI servers and chips has driven Taiwan's major IT factories to continue to see revenue growth, the largest increase in 18 months.

Nikkei reported on the 15th that due to the strong demand for AI-related servers and chips, the revenue of major Taiwanese companies that supply a large number of products and semiconductors to customers such as Apple, Microsoft, and Nvidia continued to increase. In April, the total revenue of 19 major IT factories in Taiwan, including TSMC and Hon Hai, which are included in the "Asia300" constituent stocks, was approximately NT$1,266.2 billion, a 19.4% increase from the same month last year. It has increased for two consecutive months, hitting a record high of NT$1,266.2 billion in 2022. The largest increase since the 20.6% increase in October this year.

In 2023, due to sluggish global sales of PCs and smartphones, the total revenue of Taiwan's 19 IT factories will be sluggish, but it will gradually improve after the support of AI demand.

There is a gap in the performance of Taiwan's EMS factories (electronics foundries). Hon Hai, which produces AI servers, saw its revenue surge by 19% in April, while Quanta's revenue surged by 25%. Pegatron, which mainly produces Apple iPhones, saw its revenue drop by 16.5%. Compal, which mainly manufactures notebook computers, saw a decrease of 2.2%.

For semiconductor manufacturers, due to good demand for advanced chips used in AI, TSMC, the world's leading wafer foundry, surged 59.6% in April revenue to 236 billion yuan, a record high for the same period; MediaTek's April revenue surged 48.2%, DRAM factory Nanya A surge of 41.9%, ASE's growth of 5.8%, and UMC's growth of 6.9%.

In addition to being responsible for most of the production of Apple iPhones, Taiwanese companies also control more than 60% of the global wafer foundry market share, and are responsible for nearly 90% of the production of servers, more than 80% of PCs, and 80% of game consoles, supplying a large number of products to the United States and China. For large global companies such as Japan, monthly revenue trends are expected to predict economic trends in the next three months from factory shipments to actual goods on shelves. Nikkei began to compile and investigate the revenue data of Taiwan's major IT factories in January 2013.

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