Wiwynn, a leading manufacturer of NVIDIA servers, has issued a warning that shortages are beginning to affect critical data center components beyond just memory chips. This could potentially slow down the pace of global AI infrastructure development or increase its costs.
Chairperson of Wiwynn, Hong Li-Ning, anticipates that demand for data center hardware will remain robust over the next three to five years, driven by increasing capital expenditures from companies like Meta and Microsoft. However, competition for key components, ranging from memory to networking chips, is pushing hardware prices to record highs. As various players race to expand production capacity, it is difficult to pinpoint precisely where the next round of supply constraints will emerge.
"Each year, the types of components facing shortages are somewhat different," Hong stated on Thursday. "We might start to see some relief in supply tightness by late 2027 or 2028."
This perspective aligns with warnings from other industry figures regarding supply-demand imbalances.
Wiwynn competes with companies like Foxconn and Quanta Computer. Hong also frequently attends the so-called "Trillion-Dollar Dinners," which are routine evening gatherings hosted by NVIDIA CEO Jensen Huang during his visits to partners in Taiwan, China.
Hong noted that currently, over 80% of Wiwynn's sales come from U.S. clients. The United States will be a crucial region for the company's expansion in the coming years, although she did not disclose specific investment figures.
She added that Wiwynn's new factory in El Paso, Texas, is already operational, and the company plans to build three more facilities within the next two years. She also mentioned that the company has secured sufficient power supply, which is critical for assembling AI server racks in Texas.
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