Q2 server shipments are expected to grow 7-9% q-o-q in Q2, says TrendForce.

The driving force is the top four cloud providers in the US (AWS, MS, Google, IBM) which have switched some server production from China to Taiwan to avoid the US-China trade friction.

Most Chinese companies have resumed factory operations. Server suppliers such as Huawei, Inspur, and H3C have ramped up component inventories to meet their 2H20 production plans.

Alibaba has raised its inventory in anticipation for strong server demand in 2Q20 from its “New Retail” business Hema Fresh (known as Fresh Hippo in the west) and from the surge in bandwidth usage during the upcoming 618 shopping festival.

ByteDance has also kept up its server orders to fulfill the demand from its newly built North American data centers.

The BATs (ByteDance, Alibaba, and Tencent) are expected to see a 10-20% YoY increase in server demand this year.

If the pandemic can be contained in H2, the forecast is for a 5% YoY increase in yearly server shipment.

However, if the pandemic continues to accelerate in H2, a 3% YoY increase in yearly server shipments is forecast.

By: DocMemory
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