The revenue chart tells a story that seemed impossible just three years ago. AI servers are currently generating more money than the Taiwanese manufacturing Giants iPhone. For the first time in decades, Taiwanese manufacturers have seen their bread and butter appliance business be overtaken by artificial intelligence infrastructure.
It took almost 20 years to build Apple, so AI servers have evacuated within three years, showing that companies like Foxconn are actively navigating and diversifying beyond traditional home appliances.
The scale of control of Taiwan’s servers
Taiwan’s commander in global server manufacturing is fully positioned due to the AI boom, with over 90% of all server shipments worldwide making up around 80% of global AI server construction. Its advantage comes from decades of expertise in electronics manufacturing, originally developed through the notebook computer industry. Since then, it has evolved into a key advantage in the age of artificial intelligence.
According to statistics released by Taiwan’s Ministry of Economy in October 2024, the island’s server production value from January to July 2024 reached $426.7 billion (approximately US$13.2 billion) in seven months, exceeding the total value in 2023, representing an annual growth rate of 153.9%.
Major players have experienced a surge in revenue
The impact of AI servers on Taiwan’s manufacturing Giants is nothing but a change. Wistron’s revenues increased 92.7% from January to July, a partner of Nvidia, while Quanta rose 65.6% over the same period. The numbers reflect a wider trend affecting the entire ecosystem of Taiwan’s original design manufacturer (ODM).
Foxconn, the world’s largest contract manufacturer, is probably experiencing the most dramatic changes. Consumer Electronics accounted for 35% of Foxconn’s total revenue in the second quarter of this year, with the cloud and networking business accounting for 41%. In 2021, home appliances accounted for 54% of revenue. This is the first time that AI servers and cloud infrastructure have surpassed the company’s traditional smartphone manufacturing industry.
Quanta Computer’s AI Server Focus
Quanta computers, which supply AI servers with NVIDIA chips, said AI servers are on track to account for 70% of total server revenue this year. AI servers accounted for more than 60% of servers’ total revenue in the first half of this year.
Quanta is the world’s second largest server assembly contractor, accounting for around 17% of the market. Its main focus is AI server projects from four major CSPs (Microsoft, Amazon, Google, and Meta). The company is securing orders for NVIDIA’s latest GB200 servers and expanding its production capacity to meet the growing demand.
Wistron’s strategic positioning
Wistron is currently securing orders for NVIDIA’s HGX Level 6 and DGX Level 10 servers and getting orders for the new generation AMD MI300 Series AI Server Board. Nvidia this week highlighted the strategic importance of booking the entire Wistron Server Plant in Taiwan to build AI servers, ensuring strong demand and manufacturing capacity.
Quanta Computer plans to increase production capacity for American AI servers, with its factory being reserved until the end of 2025. Capacity constraints reflect the “unusual demand” that characterizes the AI server market from 2024 to 2025.
Market share and economic impact
The financial transformation of the sector has been remarkable. Quanta Computer reports that AI servers are doing well as accounting for 70% of total server revenue this year, and AI servers have already explained more than 60% of total server revenue for the first half of 2025.
Wistron demonstrates the transformative impact of AI servers on manufacturing economy, with the company’s revenues rising 92.7% from July 2025 compared to the same period last year. The dramatic growth reflects the premium nature of AI server manufacturing compared to traditional home appliances.
This impact extends to Taiwan’s broader server ecosystem, and companies that have secured multi-year production contracts that are fully expanded through 2026 show sustainable demand and revenue visibility that was rarely seen in the consumer electronics era.
Strategic Implications and Future Outlook
“Taiwan ODMS monthly sales in the first half of 2025 are evidence of this trend,” said Robert Cheng, head of Asian Technology Hardware Research at Bofa Global Research. Reutersreferring to original design manufacturers like Foxconn, and contracts to manufacture products for clients.
This situation reflects Taiwan’s relocation in the global technology supply chain. If companies once competed on cost and manufacturing efficiency, AI servers require a higher level of technical refinement, closer collaboration with chip designers, and stricter quality control.
“We think this shift to AI servers, no matter what form it is, suited to Taiwan’s high-tech industry,” Chen said.
However, the challenge lies ahead. Taiwan’s current 90% share of the global AI server market could soon decrease as manufacturers expand their production elsewhere. Companies have already set up manufacturing facilities in the US, Mexico and elsewhere, serving local markets and abiding supply chain requirements.
Industry-wide transformation
AI Server Boom catalyzes changes that expand to rebuild Taiwan’s entire electronics manufacturing ecosystem beyond individual companies. The traditional boundaries between different types of technology products are blurred as manufacturers develop new features and develop close partnerships with AI chip companies.
The transformation also highlights its unique position in Taiwan’s global technology supply chain. The combination of high manufacturing capabilities, established relationships with key technology companies, and proximity to key semiconductor facilities has created a competitive advantage that continues to drive growth.
As artificial intelligence applications continue to require more sophisticated computing infrastructure, Taiwanese manufacturers appear to be suited to boost demand. The challenge is to maintain national technical leadership while adapting to changes in geopolitical and market conditions that may require more decentralized global operations.
The migration from consumer electronics to AI servers exemplifies Taiwan’s ability to reinvent itself in response to technology changes, maintaining a central role in the global technology ecosystem, adapting and innovating.
See: Huawei announces high-end AI chips for servers along with the MindSpore framework
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