News
Apple Requests Foxconn to Manufacture Its Proprietary Servers in Taiwan
2024/12/16
TPCA Analysis
News Briefing
Impact analysis
- To accelerate its market share growth amidst the generative AI boom, Apple has reportedly approached Foxconn to produce AI servers in Taiwan. According to reports, these servers are expected to incorporate Apple’s internally developed chips.
Impact analysis
- From a trend perspective, the ability to offer AI services has become a key factor in attracting consumers to end products. Achieving this goal not only requires product support but also hinges on the mastery of cloud computing power, which is critical for delivering robust AI services. Apple, traditionally focused on end-consumer products, has recognized this necessity. To offer a broader range of AI applications through its “Apple Intelligence” platform, the company has begun entering the Cloud Service Provider (CSP) space by developing its own servers. However, if Apple applies its historically closed ecosystem business model to its server products, it could differentiate itself from existing CSP providers.
- Although Apple is a latecomer to the CSP space, its vast user base for end products and its formidable supply chain network are likely to drive rapid growth in its market share once it enters the AI server market. Apple could even achieve a dominant position in the future. Given Taiwan’s leadership in server manufacturing and the current geopolitical landscape, Apple’s entry into the server market would be a significant boon for the electronics components industry.
- Taiwan's PCB sector is already benefiting from the server market's growth. Apple’s participation could reshuffle market rankings. Moreover, if Apple continues its strategy of focusing on high-end products, it could further benefit Taiwanese PCB manufacturers with technical expertise and geographical advantages, enabling them to secure more high-value orders.