Wiwynn expects major increase in Texas production

• By Meryl Kao / Staff reporter

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Server manufacturer Wiwynn Corp (緯穎科技) yesterday said its US capacity would make up about 20 percent of the company’s total production capacity next year, after a new line in Texas enters volume production in the second quarter of next year.

The plant in Socorro, Texas, would mainly focus on rack-scale server production for general-purpose servers and servers based on application-specific integrated circuits (ASICs), a company official said.

Wiwynn, which has invested US$1.6 billion into the El Paso County site, made the remarks after holding an opening ceremony on Tuesday.

Wiwynn Corp chairwoman Emily Hong, center, attends the opening ceremony of the company’s new manufacturing site in Texas on Tuesday.

Photo courtesy of Wiwynn Corp

Construction of the first building began last year and the facility started mass production in the first quarter of this year, the company said.

A second building is to begin production in the second quarter of next year, Wiwynn said.

“The opening of our Texas facility marks an important extension of Wiwynn’s global manufacturing footprint and a key step in strengthening our supply chain resilience,” Wiwynn chairwoman Emily Hong (洪麗甯) said in a statement.

“This site will provide advanced production capacity for server racks, becoming a vital hub for Wiwynn’s artificial intelligence (AI) and cloud infrastructure business in the US,” she said.

Mexico accounts for 70 percent of Wiwynn’s total production capacity, followed by Malaysia at 20 percent and Europe at 10 percent, the company official said.

After the second building in Texas enters mass production next year, US capacity is expected to account for 20 percent of the company’s total capacity, they added.

General-purpose servers accounted for the majority of Wiwynn’s server shipments in the first half of this year, but ASIC-based servers would catch up this quarter and make up half of the total shipments and to surpass general-purpose servers next quarter, they said.

Wiwynn would also begin shipments of graphics processing unit-based servers by the end of next quarter, they said.

While supplies of key components, including central processing units and memory, remain tight, Wiwynn’s inventory is at a healthy level, the official said.

The company introduced a procurement agency model for memory chips mainly used in general-purpose servers to mitigate risks, with chip costs borne by those customers, they said.

Wiwynn’s business outlook for the second half and the whole of this year remains unchanged, as it expects sequential and annual growth driven by robust demand for AI servers.