As the Legislative Yuan nears the end of its current session, opposition parties have proposed significant cuts and freezes to the 2025 central government budget. At a press conference on January 16, Premier Jung-tai Cho warned that these reductions would weaken Taiwan in five critical areas: technological development, national security, civil service performance, government communications, and overall national competitiveness.
AI cloud computing will remain the primary growth driver for the tech industry in 2025, while the outlook for consumer AI applications remains mixed, largely hinging on whether users can be convinced of the need to replace their devices, according to sources at IC design houses.
Strong AI-related demand will drive TSMC's 20% compound annual growth rate in revenue over the next five years, according to chairman C.C. Wei during the company's latest earnings call. This optimistic outlook aligns with broader server supply chain indicators, as order and shipment volumes demonstrate continued momentum in AI server demand, even amid concerns about GB200 shipments.
Wistron announced its consolidated financial results on January 16, 2025, reporting a record-breaking annual revenue that exceeded NT$1 trillion (US$33.3 billion) for the first time, reaching NT$1.049 trillion. The gross profit stood at NT$84.116 billion, the operating net profit was NT$38.98 billion, the pre-tax net profit amounted to NT$40.057 billion, and the post-tax net profit reached NT$30.629 billion. Among the company's diverse portfolio, AI servers emerged as the primary growth driver.
Taiwan-based chassis provider Chenbro Micom experienced a complex 2024, reaching NT$145.2 billion (approx. US$4.41 billion) in revenue, reflecting a 29% year-over-year increase. As geopolitical challenges persist, the company is expanding its manufacturing capabilities to Malaysia and the US and remains optimistic due to strong AI demand.
Statistics from Taiwan's Ministry of Finance show a significant trade surplus with the US of US$64.88 billion. Coinciding with Donald Trump's second term as President, it may put Taiwan in a delicate position.
Aetina, a subsidiary of Innodisk, has announced comprehensive support for the super mode feature introduced by Nvidia's Jetson Orin NX and Jetson Orin Nano modules. The company also announced a collaboration with Qualcomm, combining the latter's inference accelerators and advanced software with Aetina's edge computing hardware.
As AI software and hardware giants turn their attention to India for profitable opportunities, the US's recent AI chip export controls limiting India's access to advanced processors have stirred concerns about the impact on strengthening US-India relations amid enduring ties between India and Russia.
The expansion of artificial intelligence (AI) applications has established AI servers and related components as the primary growth drivers for IC distributors. With shipments of AI servers expected to increase quarterly in 2025, these robust contributions from AI are anticipated to further elevate distributor revenues throughout the year.
The recent US chip ban is expected to exacerbate the challenging circumstances for China's GPU industry, intensifying both market and production pressures.
Nvidia CEO Jensen Huang recently stated that quantum computing may take 15 to 30 years to achieve practical applications, highlighting the significant hurdles that lie ahead. Despite these challenges, interest in quantum technologies continues to grow, as evidenced by CES 2025, which featured a dedicated quantum computing forum. Major players like Google and IBM have also revealed ambitious roadmaps to guide their quantum computing development.
Compal Electronics is assessing the feasibility of setting up a server manufacturing plant in the US, with Texas being one of the potential locations, according to company president Anthony Peter Bonadero.
The latest US restrictions on AI chip exports have sent shockwaves through the global tech industry, casting a shadow over China's burgeoning tech sector. The restrictions create significant hurdles for Chinese giants like Baidu, Alibaba, and Tencent, especially as they ramp up efforts to develop advanced GPU cluster infrastructures, often referred to as "10,000-GPU clusters."
Compal Electronics chairman Ray Chen stated that the company's transformation efforts in 2024 have begun to yield positive results. Despite a slight decline in revenue during the first three quarters, profits increased by 38%. Chen is optimistic about establishing a third growth pillar beyond PCs and smartphones, with rapid progress anticipated in servers, automotive applications, and 5G.
Major cloud service providers are reconsidering their procurement strategies for Nvidia's Blackwell chips following serious technical issues, particularly overheating problems and connectivity failures. The setbacks have prompted several hyperscalers to reduce their initial orders, with some considering a return to older models.
Jensen Huang, the founder and CEO of Nvidia, is visiting Taiwan for the company's year-end celebration. Industry sources indicate that Huang routinely meets with key supply chain partners, including Quanta, Wistron, and Foxconn, during his visits, underscoring Nvidia's deep collaboration with its local manufacturing ecosystem.
The prospect of software-defined vehicles (SDVs) becoming a common sight on the road in the US will still be slim in 2025. The biggest issue is: Who is going to foot the bill for such technological advancements?
Paul S.L. Peng's resignation from Qisda's board has reignited speculation about the shifting dynamics between Qisda and AUO. Earlier in 2024, AUO reduced its stake in Qisda, fueling rumors of a growing divergence in its transformation strategies. Despite this, both companies have reiterated that AUO retains a board seat, underscoring their ongoing partnership.
Inventec's president, Jack Tsai, indicated that the company may set up a factory in the US, with Texas as the preferred location because of its closeness to their facility in Mexico.
Pegatron saw a significant revenue rebound in December 2024, propelled by initial AI server shipments and sustained client demand for new products. In the fourth quarter of 2024, the company achieved record quarterly revenue, maintaining its streak of exceeding NT$1 trillion (US$30.3 billion) in annual revenue for the eleventh consecutive year.
Hewlett Packard Enterprise Co. (HPE) won a deal worth more than US$1 billion to provide Elon Musk's X social network with servers optimized for artificial intelligence (AI) work.
UHT Unitech has entered into a significant partnership with Ablecom Technology, a Taiwanese server parts supplier of Supermicro, to push forward the development of advanced immersion cooling AI server cabinets.
Inventec achieved record monthly revenue in December 2024, defying typical seasonal patterns through substantial increases in notebook and server shipments. The unprecedented growth was largely driven by accelerated order placement from businesses anticipating potential new trade tariffs following recent political developments. Both Chinese and American clients contributed significantly to this surge in demand.
The US Department of Defense (DoD) has published its annual update to the Section 1260H blacklist, which identifies Chinese companies allegedly tied to the military. The 2024 list features 134 firms, including tech powerhouse Tencent and CATL, the world's leading manufacturer of electric vehicle (EV) batteries.
