Dan’s Biz Bookshelf: Four Important Books You Need to Read (Not Just Say You Have)
The Marketing Minute: Cracking the Code of Technical Marketing
2023 Server Shipment Forecast Downgraded to 5.94% YoY Decline
August 16, 2023 | TrendForceEstimated reading time: 2 minutes
TrendForce announces a revised forecast for 2023 server shipments, protecting a downward shift of 5.94% YoY. This downward revision is attributed to various economic challenges, including Meta’s diminished demand for 2H23 and a sluggish start in China’s internal tech demand in 1H23 (including state-owned cloud and East-West computing projects).
This shift highlights the larger economic pressures of inflation globally. CSPs are reshaping their strategies, leaning more into AI investments. Such a pivot, while innovative, has inadvertently led to a squeeze in the budget for traditional server shipments, affecting the tech market landscape.
Notably, server shipments in the third quarter are expected to show slight growth compared to Q2. However, a subsequent decline is expected as the year edges into its final quarter.
TrendForce identifies several recent indicators affecting server market momentum:
1. China’s stumbling blocks: The country’s state-owned enterprises have been putting for underwhelming bids. Despite CSPs channeling efforts into AI, China’s server demand is anticipated to dip by 9.7% compared to its 2022 numbers.
2. Global economic strains: Ongoing inflationary pressures and subsequent interest rate hikes have companies tightening their belts. Enterprise server demand has notably waned, prompting industry giants like HPE and Dell to double down on subscription services and expand into the AI server niche.
3. Supply chain hiccups: Current indications show supply chain inventory being gradually cleared, with a significant revival in purchasing dynamics expected only toward year-end.
4. CSPs’ evolving focus: With budgets being redirected, a surge in demand for older server platforms is on the horizon for 2H23, reducing the scale of new platform rollouts and possibly limiting space for 2024 server shipments.
Microsoft and Meta focus investment on AI, delaying adoption of new platforms
Furthermore, the spotlight on CSP’s reveals an interesting trend: Microsoft, post its AI investment spur, anticipates a 5.2% YoY increase in server acquisitions. For budgetary reasons, Microsoft continues to delay the scale of its Gen 9 platform, instead increasing the scale of Gen 7 & 8. Simultaneously, Meta has slashed its server purchase plans by a striking 11-15%. In a clear strategic shift, the latter is channeling more funds toward AI-centric equipment for 2H23.
Current supply chain data suggests that Meta will focus more of its budget on AI-related equipment, which means the scale of general server orders will noticeably contract. In contrast, AWS and Google have maintained steady expansion of their public-cloud businesses, with order adjustments remaining relatively stable in the 2H23 with an expected annual purchase volume growth of 4–5%.
On the OEM front, Lenovo grapples with global inflationary backlash, seeing a dip in its core business, but its White-Box Cloud business has been less affected. HPE continues to capitalize on the value brought by its GreenLake venture. Specifically, the company’s annual revenue-run rate in Q2 grew by 35% YoY, with server shipments growing approximately 10%. Dell, however, affected by an elevated baseline set in 2022 due to stockpiling, forecasts a 16.3% annual drop in shipments.
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
Armstrong Asia Signs MOU with Checkmate Capital Group to Explore Strategic Collaboration
09/15/2025 | GlobeNewswireArmstrong Asia, a leading Singapore-based manufacturer of flexible material solutions with 16 factories across 7 countries in Asia, has signed a Memorandum of Understanding (MOU) with Checkmate Capital Group, LLC (“Checkmate Capital”), a U.S.-based investment and advisory firm active in the Asia-Pacific and North American regions, focused on cross-border transactions in the life sciences, medical technology, and other industries.
Weaning the U.S. Military Off a Tablet Supply Chain That Leads to China
09/08/2025 | Jim Will, USPAETablet computers are essential to how our military fights, moves and sustains, but these devices are built on a fragile global supply chain with strong ties to China. Building domestic manufacturing to eliminate this vulnerability is feasible if we tap into the information and capabilities that already exist and create strong demand for tablets produced by trusted and assured sources.
September 2025 SMT007 Magazine: An Eye on India
09/02/2025 | I-Connect007 Editorial TeamIndia is on track to become the world’s fastest-growing major economy within the next two years, and that momentum is already reshaping its electronics manufacturing sector. Whether you work with Indian suppliers or serve Indian customers, chances are the country will become a bigger part of your supply chain in the near future.
The Hidden Geography of Electronics: Rethinking Trade, Inputs, and Strategic Advantage
08/27/2025 | Dr. Shawn DuBravac, Global Electronics AssociationBeneath the surface of debates about reshoring, tariffs, and supply chain resilience lies a deeper reality: Global electronics manufacturing is increasingly driven by the flow of inputs, not just the shipment of final goods. Electronics manufacturing is not just global; it is globally interdependent. In 2023 (the most recent data available), electronics trade reached $4.4 trillion, accounting for more than 20% of total global merchandise trade.
The Power Shift in U.S. Manufacturing Ownership
08/20/2025 | Nolan Johnson, I-Connect007The U.S. manufacturing landscape is driven by reshoring initiatives, supply chain realignments, and a surge of foreign interest. What does that mean for U.S.-based PCB and EMS companies? In this interview, mergers and acquisitions expert Tom Kastner breaks down the forces reshaping the industry—why foreign investors are eager to enter the U.S. market, why many are evaluating greenfield facilities over acquisitions, and why the high-mix, low-volume focus of most domestic shops doesn’t always align with foreign buyers’ goals.