Taiwan server players such as Inventec, Mitac International and AIC are optimistic about China's server market and have been accelerating their expansion into the market, while Quanta Computer is reportedly planning to form a deeper relationship with China-based server vendor Inspur and Wiwynn will start promoting its latest server products in China.
The server market is expected to see stable shipment growth in 2015 with demand for datacenter establishment being the major driver. The US and China are expected to achieve major growth in datacenter shipments in 2015 and China has already surpassed Europe to become the second largest server market worldwide, helping China-based server players such as Huawei and Inspur see rapid growth.
Inspur achieved on-year server shipment growth of 70% in 2014.
To enter into China's server market, Taiwan server players have been forming partnerships or establishing joint ventures with China server players. However, some market watchers are concerned that the partnerships may not benefit Taiwan server players much as most server clients in China are looking for low prices, and competition in the market is rather fierce.