Hewlett Packard Enterprise (HPE) surpassed revenue and operating margin expectations in its latest quarter, driven by strong AI-server demand, though margin pressures raise questions about sustained profitability.
Foxconn reported a November revenue of NT$672.585 billion (approx. US$20.76 billion), surpassing the total earnings of the previous year in the first 11 months of 2024. Despite a dip in Smart Consumer Electronics and Cloud & Networking Products, there was growth in Computing Products and Components & Others, driven by strong demand for AI products and new Apple releases. The company expects further improvement in the second half of the year, especially in the fourth quarter.
Tata Electronics, rapidly establishing itself as a significant iPhone assembler in line with Apple's production diversification strategy, is expanding its capabilities to become a fully integrated electronics manufacturer while pursuing discussions with other major technology companies for manufacturing contracts.
Amid surging electricity demands and growing potential in green energy, Foxconn is strengthening its market presence by leveraging AI to enhance operational efficiency and value creation.
Following the Bureau of Industry and Security's (BIS) addition of over 100 Chinese companies to its entity list, China's four major associations for automobiles, internet, semiconductors, and communications have called upon Chinese businesses to exercise caution when using American chips and to speed up domestic production. The US Department of Commerce's move aims to limit these companies' artificial intelligence (AI) and semiconductor technology development.
Dixon Technologies India has partnered with Taiwan's Compal Electronics to manufacture Google Pixel smartphones through its subsidiary Padget Electronics. The production will take place at Padget's manufacturing facility in Noida, India, marking a significant expansion of Google's manufacturing presence in the country.
Workstations are the latest hardware category to see an AI-related boom. As noted by James Huang, chairman of rugged industrial PC (IPC) specialist Getac Technology, the company has seen strong sales of its X600 Server, a fully rugged command server, due to enterprise demand for AI functions. In addition, Quanta executive VP Alan Tsai has recently noted untapped potential in workstations.
Although it remains unclear what policies Donald Trump will implement in his second presidential term, business leaders including Foxconn chairman Young Liu have highlighted ongoing geopolitical tensions. Additionally, supply chain companies report that clients have begun requesting earlier shipment schedules.
On December 3, China declared an export ban on these metals to the US, a retaliatory action following US President Joe Biden's administration's introduction of new technology restrictions targeting China.
Luxshare Precision, a key Chinese partner of Apple, is expanding its production capacity in Vietnam through a significant enlargement of its Nghe An facility. The workforce is expected to grow from 12,000 to 60,000–80,000, reinforcing its position in Apple's global supply chain.
The potential of AI in advancing smart manufacturing has been widely recognized, but deaths and injuries involving robots at factories have called attention to functional safety, of which semiconductor chips play a crucial part, according to industry sources.
Super Micro Computer said an independent review of its business found no evidence of misconduct but recommended that the server maker appoint new top financial and legal leadership.
Donald Trump's upcoming return to the US presidency and his promised import tariffs threaten to disrupt the World Trade Organization's free trade principles. The WTO's 166 member states account for a combined 98% of global trade, and industry watchers are closely monitoring how these protectionist policies might reshape global commerce.
Orders for brand AI servers are surging, prompting Taiwan-based electronic contract manufacturing firms to capitalize on the trend regardless of order variations.
Demand for AI servers will not peak in 2025, according to Quanta Computer executive VP and Quanta Cloud Technology general manager Mike Yang. In his opinion, the AI industry has seen an end-to-end progression encompassing all aspects from training and inference to end-user devices. Quanta has also seen AI server orders steadily increase.
Aaeon Technology faced headwinds in 2024 as weak demand slowed inventory clearance, but CEO Howard Lin anticipates recovery beginning in the fourth quarter of 2024 when customers resume ordering. This upturn is expected to drive the booking-to-billing ratio above 1, indicating a sector recovery that should continue with sequential growth into 2025.
Donald Trump's election win has prompted a flurry of debate and reaction even before he takes office. Acer founder Stan Shih stated that while the world evolves swiftly, Taiwan-based manufacturers will benefit from their flexibility and agility.
Faced with challenging market conditions, Jamicon Teapo is repositioning its 2025 growth strategy to focus on AI applications, particularly in high-end passive components and high-ASP specialty products, as inflation and reduced consumer purchasing power continue to constrain demand in automotive and consumer sectors.
Amid mounting pressures on talent and resources, Taiwan is looking to widen its horizons abroad, exploring the possibility of establishing science parks beyond its borders as part of its strategy to sustain industrial growth.
SoftBank, which has stakes in numerous Indian unicorns, focuses on tapping into India's potential in the AI era. Nationally, India may introduce another incentive to support local electronics manufacturers. An area Apple is currently scouting for.
HMD Global has strategically designated India as a crucial export hub for Nokia phones in response to the evolving dynamics of the global trade environment. The persistent trade tensions between the US and China have prompted the search for alternative supply chains, with India increasingly becoming a favored manufacturing location for numerous companies, including HMD.
Taiwan's Hiwin Technologies, a leading maker of motion control components, has been investing in robotics for years, with a strong focus on industrial applications. Chairman Eddie Chuo has repeatedly emphasized that Hiwin has no plans to produce humanoid robots. Instead, the company continues to enhance its expertise in core components such as harmonic reducers, ball screws, and linear guideways, which are critical across various robot types.
Allis Electric Co. (AEC) is broadening its market focus beyond semiconductors to tap into the surging energy demands of artificial intelligence and data center sectors. The company plans to leverage its established expertise in high- and low-voltage switchgear and transformers, building upon its strong foundation as a supplier to Taiwan's leading semiconductor manufacturers.
LG Electronics has announced a major organizational restructuring aimed at shifting from a product-focused strategy to a solution-driven approach. This strategic realignment seeks to drive sustainable business growth while bolstering the company's competitive edge.
