February 14, 2024 /SemiMedia/ -- Young Liu, chairman of Hon Hai Technology Group (FOXCONN), said in a recent interview that the AI server industry is still facing a large shortage of AI chips. Even if the supply of AI chips eases in the second half of the year, it will still not be able to keep up with demand.
Although the AI server business is growing, Young Liu admitted that geopolitics and the international economy will affect consumer electronics demand this year. Overall, FOXCONN's AI server business is performing well, but several other businesses such as consumer electronics will be affected by the market. It is expected that FOXCONN's overall performance this year will be slightly higher than last year.
FOXCONN is the largest manufacturer in the global server market, with a market share of more than 40%. The AI server market share is even higher, especially in GPU modules and substrates, with a market share of more than 70%.
Industry insiders said that the AI server industry has recently faced the challenge of supply shortage from AI chip manufacturers such as NVIDIA. The industry expects that the shortage of AI chips will gradually fade in the second half of the year.
