Global 1Q18 server shipments to be flat

Worldwide server shipments in the first quarter of 2018 are expected to stay flat or drop slightly due to seasonal impact, but demand from large-size datacenter clients will remain strong.

Shipments to major datacenter players including Microsoft, Amazon and Facebook are still expected to rise sequentially in first-quarter 2018, despite weakened demand in the overall market, Etmag estimates.

Worldwide server shipments reached 3.66 million units (based on motherboards shipped) in the fourth quarter of 2017, accouting for over 25% of the annual volumes in 2017.

With China-based Huawei Technologies, which manufactures all its servers in house, expected to see on-quarter shipment increase in the first quarter of 2018, Taiwan's share of worldwide server shipments is expected to slip modestly from a quarter ago.

Wistron and its subsidiary Wiwynn formed the largest source of server supplies in the fourth quarter of 2017, but its overall output is expected to decline sequentially in the first quarter of 2018.

Having lost a significant volume of orders in 2017, Foxconn Electronics (Hon Hai Precision Industry) is turning aggressive in striving for orders for 2018, and it is expected to achieve significant sequential growth in its first-quarter-2018 shipments.

Etmag's latest Special Report about Taiwan's server industry shows that 2017 worldwide server shipments arrived at 12.66 million units.