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Server, networking device players expanding manufacturing in Taiwan and North America

digitimes.com, Jul. 10, 2019 – 

The supply chain of servers and network communication devices has continued shifting their production out of China with Taiwan and North America being the two major choices for the relocations, according to sources from the server industry.

The sources believe Taiwan's component supply ecosystem will grow more complete as more related production is moving back. Non-Taiwan server system integrators and electronic manufacturing service (EMS) providers such as Hyve, Flextronics and Jabil are also expected to benefit from increasing orders.

Mitac Computing Technology, a server ODM affiliate of the Mitac Group, reactivated an old production line at Hsinchu Science Park (HSP) in Taiwan at the end of 2018 and restarted another for motherboard SMT process in March 2019. The company is planning to establish one more SMT production line prior to the end of 2019.

Mitac is currently planning to produce all of its high-end US-bound servers in Taiwan and is looking to move 30% of its overall server production lines back to Taiwan in the next three years.

Wiwynn, a cloud computing server subsidiary of Wistron, is primarily assembling its US-bound servers in Mexico and has also recently established a production site in southern Taiwan per clients' requests.

The production lines in Taiwan already began mass production in June and are mainly manufacturing server motherboards. The company is planning to add three more production lines at the facility in the second half. The plants will also be used for pilot production and the manufacturing for special orders.

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