Relatively stable demand for servers is likely to become the only major growth driver for PCB makers in 2019 amid the lackluster global sales of consumer electronics devices, but the makers are still cautious about some variables that may affect their shipment of server-use PCBs, according to industry sources.

The major variable is the uncertainties arising from the US-China trade war, which may force cloud service providers to adjust downward their capital expenses on the establishment of datacenters, reducing demand for servers, the sources said.

But major PCB makers including Tripod Technology and Gold Circuit Electronics shared the view that demand for servers will maintain stable growth in 2019 unless an economic recession erupts in the US to undermine performances of cloud datacenter operators in the country. In 2019, the two makers will increase the supply ratio of PCBs with increased number of layers to makers of datacenter servers for 5G applications.

In contrast, server shipments to the China market has been impacted since the fourth quarter of 2018, when the government there started to tighten regulations on online gaming business, affecting shipments of server-use PCBs to the market, industry sources said.

Demand for datacenter servers in China mainly comes from three major segments: social media, online shopping and online gaming, all requiring sufficient information flow to support normal operations, the sources indicated.

By: DocMemory
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