TAIPEI (TVBS News) — Hon Hai Precision Industry Co. Chairman Young Liu stated last Sunday (Feb. 4) that business prospects for AI servers in 2024 are promising, yet the industry is still contending with an insufficient AI chip supply.
Liu noted that the chip shortage problem is expected to persist throughout the year and even if it relaxes in the latter half, it will not be able to catch up with demand.
The problem can only be solved by waiting for upstream new factories to increase their production capacity, he stressed.
Liu revealed that geopolitical and international economic conditions could impact the demand for consumer electronic products this year while predicting Hon Hai's 2024 overall performance would see a slight increase compared to the previous year.
Hon Hai holds a significant position in the global AI server industry, more so in upstream GPU modules and substrates, where it holds a market share exceeding 70%.
However, the supply of AI chips from major manufacturers like NVIDIA in 2024 is suffering a significant shortfall, with only a few leading companies being able to secure adequate quantities.
Second and third-tier factories, despite shortages, have claimed that their AI server performance would be good in 2024, of which he expressed skepticism and confusion over this situation.
