Production of servers and server components will soon shift from China and Taiwan to countries in Southeast Asia and North, Central and South America. Researchers at TrendForce stated this in a report. This is due to geopolitical development.
According to researchers Taiwan currently accounts for 90 percent of global production of server components such as motherboards. Previously, this production was mainly in China. However, over the past four years, this production has mostly shifted to the island state.
Nevertheless, they say the production of server components will have a new home in countries in Southeast Asia, but also in North, Central and South America in the coming years. The main reason for the change in server manufacturing is the recent geopolitical developments. Think of the conflict between China and the United States. The recent explosion in the number of data centers in Southeast Asian countries will contribute to the shift in productivity.
Hyperscalers lead the way
It’s also worth noting that the shift in server manufacturing is being driven by three major hyperscalers: AWS, Microsoft and Google. Mainly due to rising tensions between China, Taiwan and the United States, they have decided to shift the production of their server farms to countries in Southeast Asia and through OEM partners, especially to Central America and Mexico, so TrendForce concludes the survey.