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The Taiwanese Server Industry, 3Q 2004 and Beyond

December 28, 2004 / Sagitta Pan

21 Page, Statistics Report

US$1,160 (Single User License)

Abstract

The recent stabilization of the global economy, along with resurgence in corporate IT investment, helped facilitate steady development in the global server market and boost shipment growth for Taiwanese makers. In the third quarter, Taiwanese server shipment volume reached a new historic high of 525,000 units, marking 18% year-on-year growth. Total shipment value topped off at US$457 million for 19.9% year-on-year growth. The fourth quarter brings the peak of corporate procurement for the year, but economic uncertainties clouding the dawn of 2005 will likely dampen corporate enthusiasm for IT investment. As such, Taiwanese server shipments will continue to expand, but not by the wide margin enjoyed in 2004.

List of Topics
Quarterly shipment forecasts up to the third quarter of 2005; special discussion on blade servers, 64-bit CPUs, and shipment trends for various x86 servers and RISC servers. 3Q 2004 review of shipment volume and value, manufacturer rankings, shipment volume and value by tier and tier analysis of barebones and full system shipments, CPU architecture, CPU count, form factor, and business types; as well as a review of production locations and shipment destinations.

AMD, Arima, ASUS, Dell, FIC, Gigabyte, HP, IBM, Intel, Iwill, Mitac, MSI, Quanta, Sun Microsystems, Tatung, USI, Wistron

List of Figures
Figure 1 The Taiwanese Server Industry's Shipment Volume, Shipment Value, & ASP, 3Q 2002 - 3Q 2004

Figure 2 Taiwanese Server Shipment Volume by Tier, 3Q 2002 - 3Q 2004

Figure 3 Taiwanese Server Shipment Value by Tier, 3Q 2002 - 3Q 2004

Figure 4 Taiwanese Server ASP by Tier, 3Q 2002 - 3Q 2004

Figure 5 Taiwanese Full-System and Barebones Server Shipment Volume, 3Q 2002 - 3Q 2004

Figure 6 Taiwanese First Tier Server Maker Full-System and Barebone Shipment Volume, 3Q 2002 - 3Q 2004

Figure 7 Taiwanese Second Tier and Others Server Maker Full-System and Barebone Shipment Volume, 3Q 2002 - 3Q 2004

Figure 8 Taiwanese Server Business Types, 3Q 2002 - 3Q 2004

Figure 9 Taiwanese First Tier Server Maker Business Types, 3Q 2002 - 3Q 2004

Figure 10 Taiwanese Second Tier and Other Server Maker Business Types, 3Q 2002 - 3Q 2004

Figure 11 Taiwanese Server Production Locations, 3Q 2002 - 3Q 2004

Figure 12 Taiwanese Server Shipment Destinations, 3Q 2002 - 3Q 2004

Figure 13 Taiwanese Server Shipments by CPU Architecture, 3Q 2002 - 3Q 2004

Figure 14 Taiwanese First Tier Server Maker Shipments by CPU Architecture, 3Q 2002 - 3Q 2004

Figure 15 Taiwanese Second Tier and Other Server Maker Shipments by CPU Architecture, 3Q 2002 -3Q 2004

Figure 16 Taiwanese Server Shipments by Number of CPUs, 3Q 2002 - 3Q 2004

Figure 17 Taiwanese First Tier Server Maker Shipments by Number of CPUs, 3Q 2002 - 3Q 2004

Figure 18 Taiwanese Second Tier and Other Server Maker Shipments by Number of CPUs, 3Q 2002 - 3Q 2004

Figure 19 Taiwanese Server Shipments by Form Factor, 3Q 2002 - 3Q 2004

Figure 20 Taiwanese Server Shipment Share by Form Factor, 3Q 2002 - 3Q 2004

Figure 21 The Taiwanese Server Industry's First Tier Maker Shipment by Form Factor, 3Q 2002 - 3Q 2004

Figure 22 Taiwanese Second Tier Server Maker Shipment Share by Form Factor, 3Q 2002 - 3Q 2004

Figure 23 Taiwanese Server Shipment Volume, 2Q 2003 - 3Q 2005

List of Tables
Table 1 Major Taiwanese Server Manufacturers' Rankings by Tier 2Q 2003 - 3Q 2004

Appendix

Research Scope

Servers referred to in this report include machines that are manufactured, sold, and marketed as servers, and employ standard networking operating systems such as NetWare, NT, Linux, and Unix.

Servers mentioned in this report include Intel-based CPU (Central Processing Unit) core and RISC (Reduced Instruction Set Computer) CPU core servers, as well as servers containing other core CPU architectures.

Production volume and production value statistics encompass both full system and barebone servers. Full system servers are products that are ready for use; barebone servers refer to products that include a motherboard, but do not include a CPU, DRAM module, or HDD (Hard Disk Drive).

Definitions

Business Types

OEM

The OEM business model entails carrying out product manufacturing or assembly according to specifications supplied by the customer. The OEM business model emphasizes production efficiency; thus, in order to lower costs, customers outsource manufacturing to OEM providers. This cooperation forms a division of labor among design, manufacturing, and sales.

ODM

The ODM (Original Design Manufacturing) business model entails undertaking product design and manufacturing, but not direct retail sales or brand promotion. ODM providers either collaborate with customers on product specifications or independently design products according to customer specifications; the ODM provider then receives manufacturing orders upon customer approval. The ODM model links the sales capabilities of the ODM customer and the design and manufacturing capabilities of the ODM provider, developing a cooperative division of labor throughout the product's value chain.

EMS

EMS providers focus on the manufacturing and after-sales service end of the value chain; some providers also offer design services. EMS is alternatively called CEM (Contract Electronics Manufacturing); however, the CEM business model mainly focuses on the manufacture of subassemblies, rather than the production of complete products or logistics.

Glossary of Terms

1U		One Height Unit
ASP		Average Selling Price
CPU		Central Processing Unit
DDR2		Double Data Rate 2
EIU		Economist Intelligence Unit
EMS		Electronic Manufacturing Service
IMF		International Monetary Fund
ODM		Original Design Manufacturing
OEM		Original Equipment Manufacturing
PCI		Peripheral Component Interconnect
RAS		Remote Access Server
RISC		Reduced Instruction Set Computer
SAN		Storage Area Network
SPARC		Scalable Processor Architecture

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