A key manufacturer of NVIDIA (NVDA.US) servers, Wiwynn, has issued a warning that shortages are extending beyond memory chips to other critical data center components. This situation could potentially slow down the global construction of artificial intelligence (AI) infrastructure and drive up associated costs. Wiwynn's Chairperson, Hong Lining, anticipates that data center hardware demand will remain robust over the next three to five years, fueled by increased capital expenditures from companies like Meta Platforms Inc. and Microsoft. However, intense competition for essential components, ranging from memory to networking chips, is pushing hardware prices to record highs. The continuous expansion of production by major manufacturers makes it difficult to predict when the supply chain shortages will peak. In an interview on Thursday, Hong Lining stated, "The specific components facing shortages change every year, and supply chain tightness may not begin to ease until late 2027 or 2028." Wiwynn competes with companies like Hon Hai Precision Industry and Quanta Computer. Hong Lining frequently attends the so-called "Trillion-Dollar Banquet," a regular dinner hosted by NVIDIA CEO Jensen Huang during his visits to partners in Taiwan, China, named for the combined market capitalization of the attending companies exceeding one trillion New Taiwan dollars. Hong Lining revealed that currently over 80% of Wiwynn's revenue comes from U.S. clients. The United States will be a key area for the company's expansion in the coming years, although she did not disclose specific investment figures. She also noted that Wiwynn's first factory in El Paso, Texas, has commenced operations, with plans to build three more facilities within the next two years. She added that the company has secured sufficient power supply, which is crucial for assembling AI server racks in Texas.
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