Power supply maker and energy management solution provider Delta Electronics has posted gross margin of 27.43% and net profit of NT$5.264 billion (US$176 million) for second-quarter 2014, with both hitting the highest ever on company record. Of second-quarter consolidated revenues, 60% came from power supplies and components, 19% from energy management devices and smart green life products each, and 2% from others.
Taiwan-based server ODMs including Quanta Computer, Wistron and Inventec may obtain orders arising from the beginning of Project Scorpio 2.0, the second version of a project to boost low-cost and highly scalable data center infrastructure jointly by China-based Internet service operators Baidu, Alibaba and Tencent through collaboration with Intel, in September 2014, according to Taiwan-based supply chain makers.
Asustek Computer’s competition with Gigabyte Technology over the motherboard business is growing fiercer as the two firms’ shipment gap will only be 100,000 units, according to sources from channel retailers. Asustek shipped 10.4 million motherboards and Gigabyte 10.3 million units in the first half of 2014.
Shipments of x86 servers in the China market during the first quarter of 2014 totaled 350,000 units, up 22.9% on year. Meanwhile, factory revenues of x86 servers during the quarter reached US$1.07 billion, growing 24.5% on year. “China’s x86 server market has seen steady growth, driven by the continuous investment of Internet companies in infrastructure as well as the emerging demands of the traditional IT enterprises for local products. The gap between domestic vendors and leading MNC vendors is narrowing down,” said Eric Peng, research manager with IDC China.
Upstream component suppliers such as Intel and hard disc drive (HDD) makers, have started providing support to white-box server players such as Taiwan-based ODMs and the strategy is expected to significantly raise white-box server players’ R&D and cost management ability, according to sources from the upstream supply chain.
Quanta Computer’s white-box server subsidiary is planning to establish new branches in Hangzhou and Shenzhen, China to tighten its partnerships with China-based Internet players Alibaba and Tencent, while Wistron has cooperated with industrial PC (IPC) player Arbor Technology to seek Internet of things (IoT) business opportunities.
As China and the US dispute over the stealing of confidential information through the Internet, China has launched counter attacks to reject server products from IBM, Oracle and Cisco and the situation is expected to benefit Taiwan server-related players, according to sources from server players.
Supermicro Computer, a global leader in high-performance, high-efficiency server, storage technology and green computing, has continued to expand its server and storage rack solutions amid increased demand for highly scalable, energy efficient and environmentally friendly solutions for data center, cloud and enterprise IT environments.
ASRock Rack, a server subsidiary of ASRock, is expected to achieve break-even operations by the fourth quarter of 2014 and start earning profits in the first quarter of 2015. ASRock Rack has already landed orders from clients in Europe, North America and Southeast Asia and will start shipping orders later in 2014, the market watchers noted.
While there is an opinion that strong demand for data center servers may maintain for three years at the most and subsequently there will be demand for replacement and maintenance services only, Taiwan-based ODMs generally believe that the demand will continue to grow over the next five years.
Taiwan makers have successfully entered the supply chain of the Internet datacenter center (IDC) industry and may contribute over 90% of the global server shipments in 2014. Combined revenues from related product lines such as motherboards, back-end assembly, storage and telecommunication devices, are expected to reach NT$450 billion (US$14.94 billion) in the year, up 8.8% from 2013.
HP and Foxconn announced that the two parties have established a joint venture for the development of servers designed for cloud computing services. According to the two companies, they signed an agreement to set up a non-equity joint venture on May 1, 2014. Ownership splits and capitalization schedules for the new entity were not released.
IBM and Lenovo Group have said very little about the progress of the $2.3 billion deal that will see the Chinese company take over IBM’s X86 server business. But at the Edge 2014 conference hosted by IBM in Las Vegas this week, the company said the deal was on track. In a keynote address, Adalio Sanchez, general manager of the System x division, who gave EnterpriseTech the scoop on the deal shortly after it was announced in January, could not be precise about how the deal was progressing through the various regulatory bodies of the world.
Inventec expects 2-digit on-year growth in ODM server shipments in 2014 and more than 10% on-year growth in the corresponding revenue, the company said at a May 13 investors conference. Due to declining demand for consumer notebooks, Inventec said its total notebook shipments in first-quarter 2014 slipped sequentially. However, first-quarter shipments of servers, smart handheld devices and PV products all rose significantly, Inventec said.
The partnership came into effect on May 1, 2014 News | by CIOL Bureau MUMBAI, INDIA:Foxconn, world’s leading manufacturer of computer components and systems is establishing joint venture with Hewlett-Packard (HP) exclusively to manufacture servers for cloud computing and offering related supporting services. The partnership came into effect on May 1, 2014.
Hewlett-Packard is hoping contract manufacturing giant Foxconn can help it gain traction in the market for low-cost, low-power servers aimed at large-scale cloud service providers. The two companies, which already partner on a range of systems, including servers and PCs, announced a deal April 30 in which Foxconn will design and manufacture the systems and HP will add services atop the systems and sell them.
Wistron and Inventec will begin ODM production of ARM-architecture servers for Hewlett-Packard (HP) in the second half of 2014, according to Taiwan-based supply chain makers. Some component makers will start shipping products for HP’s ARM-based servers in May. Although ARM solutions are unlikely to become an immediate threat to Intel, the sources believe the extra option should provide clients more leverage to bargain for better prices and more resources from Intel.
SAN JOSE, Calif.–(BUSINESS WIRE)–Super Micro Computer, Inc. (NASDAQ:SMCI), a leader in application optimized, high performance server solutions, today announced third quarter fiscal 2014 financial results for the quarter ended March 31, 2014.
Fiscal 3rd Quarter Highlights
- Quarterly net sales of $373.8 million, up 4.9% from the second quarter of fiscal year 2014 and up 34.4% from the same quarter of last year.
- GAAP net income of $16.6 million, up 24.3% from the second quarter of fiscal year 2014 and up 135.4% from the same quarter of last year.
- GAAP gross margin of 15.3%, down from 15.5% in the second quarter of fiscal year 2014 and up from 14.0% in the same quarter of last year.
- Server solutions accounted for 50.1% of net sales compared with 48.8% in the second quarter of fiscal year 2014 and 41.8% in the same quarter of last year.
Despite expectations of a strong second quarter thanks to the launch of Intel’s Haswell Refresh platform, motherboard players such as Asustek Computer, Gigabyte Technology, Micro-Star International (MSI) and ASRock have also been pushing their non-motherboard businesses aggressively, hoping to raise their profitability, according to market watchers.
Quanta Computer and Wiwynn have seen large increases in direct-account orders for data center servers from Facebook and Microsoft, with production capacities already fully utilized, according to Taiwan-based supply chain makers. Despite brand vendors such as Hewlett-Packard (HP) and Dell strengthening their purchasing costs and adjusting customized server products, large Internet players still continue to place their orders with Taiwan-based ODMs.