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Global server demand poised for 7.6% increase

Global server shipments resumed on-year growth in 2020, driven by rising demand for cloud computing services and work-from-home solutions amid the coronavirus pandemic. Related demand will continue rising in 2021 due to the lingering pandemic, driving up shipments by another 5.6% on year. Intel and AMD are set to make mass deployments of their new-generation CPUs in the first half of 2021 and demand for cloud computing services will continue boosting server orders from datacenter operators.
Taiwan-based makers’ server-related revenues are expected to climb 7.6% on year in 2021, buoyed by growing demand from cloud service operators, while global server shipments will pick up 5.6% on year.

Taiwan makers saw revenues from server-related hardware and software including motherboards, full-rack systems, networking equipment and storage equipment, increase by about 11% on year to reach over NT$1.5 trillion (US$52.88 billion) in 2020, higher than the 7% growth in server shipments in the year.

Taiwan’s server-related product revenues are expected to grow further by 7.6% on year in 2021 as demand from US- and China-based first-tier datacenter operators continued to pick up.

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