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TrendForce reveals that Quanta, due to its geographical ties, has established several production lines in its Thai facilities centered around Google and Celestica, aiming for optimal positioning to foster customer loyalty.
Meanwhile, Foxconn has renovated its existing facilities in Hanoi, Vietnam, and uses its Wisconsin plant to accommodate customer needs.
Both Wistron and Wiwynn are progressively establishing assembly plants and SMT production lines in Malaysia.
Inventec’s current strategy mirrors that of Quanta, with plans to build SMT production lines in Thailand by 2024 and commence server production in late 2024.
CSPs aim to control the core supply chain, AI server supply chain trends toward decentralization
TrendForce suggests that changes in the supply chain aren’t just about circumventing geopolitical risks—equally vital is increased control over key high-cost components, including CPUs, GPUs, and other critical materials.
With rising demand for next-generation AI and Large Language Models, supply chain stockpiling grows each quarter. Accompanied by a surge in demand in 1H23, CSPs will become especially cautious in their supply chain management.
Google, with its in-house developed TPU machines, possesses both the core R&D and supply chain leadership. Moreover, its production stronghold primarily revolves around its own manufacturing sites in Thailand.
However, Google still relies on cooperative ODMs for human resource allocation and production scheduling, while managing other materials internally.
To avoid disruptions in the supply chain, companies like Microsoft, Meta, and AWS are not only aiming for flexibility in supply chain management but are also integrating system integrators into ODM production. This approach allows for more dispersed and meticulous coordination and execution of projects.
Initially, Meta heavily relied on direct purchases of complete server systems, with Intel’s Habana system being one of the first to be integrated into Meta’s infrastructure. This made sense since the CPU for their web-type servers were often semi-custom versions from Intel.
Based on system optimization levels, Meta found Habana to be the most direct and seamless solution. Notably, it was only last year that Meta began to delegate parts of its Metaverse project to ODMs. This year, as part of its push into generative AI, Meta has also started adopting NVIDIA’s solutions extensively
