Dan’s Biz Bookshelf Dan's Biz Bookshelf: 'Apple in China: The Capture of the World’s Greatest Company'
The Chemical Connection: Experience and Wisdom Gained by Doing Business
It's Only Common Sense: Leveraging AI in Your Sales Strategy
Upstream Supply Chain Replenishment and Increased Demand Drive Global Server Shipment Growth by 4–5% in Q3
July 1, 2024 | TrendForceEstimated reading time: 1 minute
TrendForce reveals that although the overall environment this year has been impacted by AI budget constraints—leading to slower-than-expected growth for general—recent procurement strength for related components such as BMCs and new CPUs indicates an improving trend for new server platforms among OEMs and CSPs. Additionally, surveys of ODM supply chains reveal that server shipments, after a seasonal dip in the first quarter, are expected to show sequential growth in the second and third quarters.
OEMs and CSPs are more aggressively preparing CPUs compared to previous periods. Both Intel's Sapphire Rapids and Emerald Rapids, as well as AMD's Bergamo and Genoa, are showing significant growth thanks to increased cloud-related demand. In the BMC sector, strong procurement momentum, particularly for the GB200, and stockpiling by Chinese companies are leading to larger orders at the end of Q2 and into Q3. TrendForce expects bit shipments to exceed initial forecasts, with DDR5's share rising to the 60% mark in Q3.
TrendForce has observed that server demand will increase from Q2 to Q3, with enterprise OEMs—such as Dell, HPE, and Lenovo—showing the most significant shipment growth. This growth is driven not only by strong demand for AI servers but also by tenders postponed due to the pandemic and the rising need for AI-driven storage servers. As a result, Q2 shipment performance has been strong and is expected to continue into Q3, with an estimated quarterly growth of 4-5%.
For Chinese companies, although regional economic conditions have not fully recovered, government-led telecom tenders in China are set to begin this month, boosting demand for orders for companies such as IEIT and xFusion. In the CSP sector, ByteDance is increasing its server procurement for new business needs, while Alibaba and Tencent are raising their server orders due to upgrade cycles.
TrendForce believes it is essential to monitor whether current demand can sustain server growth, but recent component procurement momentum indicates that the previous displacement effect of general servers by AI servers is gradually diminishing.
Share on:
Testimonial
"Our marketing partnership with I-Connect007 is already delivering. Just a day after our press release went live, we received a direct inquiry about our updated products!"
Rachael Temple - AlltematedSuggested Items
Nolan’s Notes: Everyone Has Their Eye on India
09/03/2025 | Nolan Johnson -- Column: Nolan's NotesIn this issue of SMT007 Magazine, we turn our attention to the Indian EMS market. We start with an interview with David Bergman, whose foresight in the early 2000s opened doors for the Global Electronics Association to begin helping Indian EMS companies with standards and certifications that would give EMS companies a footing to enter a global EMS market.
North American PCB Industry Shipments Up 20.7 Percent in July
08/27/2025 | Global Electronics AssociationThe Global Electronics Association announced today the July 2025 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.00. Total North American PCB shipments in July 2025 were up 20.7% compared to the same month last year.
TTM Technologies: Bridging East and West with Strategic Expansion
08/25/2025 | Marcy LaRont, I-Connect007As global supply chains shift and demand for supply chain resiliency grows, TTM Technologies is expanding with purpose: bolstering its U.S. presence while maintaining a strong footprint in Asia. With recent moves in Wisconsin and Malaysia, the company is positioning itself to better support customers amid an evolving geopolitical landscape. In this interview, President and CEO of TTM Technologies Tom Edman discusses TTM’s expansion strategy, the future of manufacturing, and his planned retirement after his long tenure at the helm of the company.
Ecolab to Acquire Ovivo’s Electronics Ultra-Pure Water Business
08/15/2025 | EcolabEcolab Inc. has entered into a definitive agreement to acquire Ovivo’s Electronics business, a leading and fast-growing global provider of breakthrough ultra-pure water technologies for semiconductor manufacturing.
MacDermid Alpha Electronics Solutions Announces New Strategy Vice President Role for India
08/14/2025 | MacDermid Alpha Electronics SolutionsMacDermid Alpha Electronics Solutions, a leading supplier of integrated materials and chemistries to the electronics industry, is pleased to announce the appointment of Dr. Ravi Bhatkal to the newly created role of Vice President, Strategy, India.