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Notebook component makers shift to server applications along with ODMs
Published:2015-07-31 19:01:15    Text Size:【BIG】【MEDIUM】【SMALL

While notebook ODMs, such as Quanta Computer and Compal Electronics, have been expanding staff specifically for servers used in cloud computing data centers, their component suppliers, including thermal modules, power supplies and metal stamping, have also extended related production, according to Taiwan-based supply chain makers.

The sources pointed out that Intel's datacenter business units had a 10% growth in second-quarter revenues, while profits from the business also surpassed those of its PC business, making the datacenter center business the CPU giant's new main profit contributor. The trend also triggered upstream supply chains to start turning their focuses to the segment.

Taiwan-based thermal module maker Chaun-Choung Technology (CCI) has 40% of its revenues contributed by server-related products. CCI ships about eight million thermal modules for servers each year, and is supplying to clients including Hewlett-Packard (HP), Dell, and Quanta.

Japan-based thermal module maker Furukawa Electric also recently entered the supply chain of Google and Microsoft to supply products for their datacenters. The company also started sending samples to Facebook and Amazon recently, looking to expand into their supply chains.

Currently, Quanta's server team has about 1,000 employees and is focusing mainly on the integration between software and hardware. By the end of 2015, Quanta is looking to double the team's personnel and will continue to recruit more talent in 2016. Meanwhile, Compal's server team has recruited about 300 employees in two years and is still expanding.

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