Growth Propelled by AI Server Expansion: Wiwynn (paraphrased)
Taiwan-based Wiwynn Corp, a cloud computing equipment supplier, anticipates growth in artificial intelligence (AI) server shipments during the second half of the year. The surge is anticipated primarily due to the escalating demand for graphics processing unit and application-specific integrated circuit (ASIC) servers.
During a press conference following the company's annual shareholders' meeting, Wiwynn CEO and President William Lin revealed that general-purpose server shipments are expected to remain stable in the second half.
The company aims to initiate the shipment of its initial batch of AI servers powered by Nvidia Corp's GB300 chip in August. This delivery is expected from a new factory planned in Texas, an initiative designed to combat the impact of tariff uncertainties.
In a separate note, Wiwynn Chairwoman Emily Hong expressed the company's interest in exploring opportunities within servers powered by ASICs or customized AI accelerators built by cloud service providers, as chip technology has significantly matured.
Despite optimistic prospects in the server sector, Hong cautioned about US tariff uncertainties and the sharp appreciation of the New Taiwan dollar against the US dollar. Every NT$1 increase in the NT dollar relative to the US dollar reduces Wiwynn's revenue by 3 percent and slashes the operating margin by 0.05 percentage points.
Despite the potential risks, Hong highlighted that the foreign exchange rate issue remains manageable, given the company's efforts to strengthen hedging tools against foreign exchange volatility.
To mitigate the effects of tariff uncertainties, about 70 percent of Wiwynn's servers exported to North America are manufactured in Mexico, taking advantage of the country's preferential tax status under the US-Mexico-Canada Agreement and Section 232 of the US Trade Expansion Act of 1962. The company remains flexible about adjusting its manufacturing sites as needed to suit changes in US tariff policies.
Shareholders approved the company's plan to distribute a cash dividend of NT$74 per share during the meeting, marking the highest payout in the company's history. The decision represented a 58.5 percent payout ratio based on the company's earnings per share of NT$126.57 last year.
Enrichment Data Sources:- [1] US Court of International Trade rules President Trump lacked authority to impose global tariffs- [2] Wiwynn Corp to start shipping AI servers powered by Nvidia GB300 chips from Texas factory- [3] Wiwynn expands US operations to mitigate tariff risks, serve US clients more reliably- [4] Wiwynn prepares multiple scenarios to respond to changing US trade policy conditions
The Taiwan-based company, Wiwynn Corp, is focusing on the development of data-and-cloud-computing technology with the aim of shipping AI servers, particularly those powered by Nvidia Corp's GB300 chip. This move is not only to combat tariff uncertainties but also to explore opportunities within servers powered by ASICs or customized AI accelerators built by cloud service providers.
In the wake of the maturity of chip technology, Wiwynn Chairwoman Emily Hong expressed the company's interest in servers powered by ASICs or customized AI accelerators, further emphasizing their commitment to technology innovation.
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