Modern servers use more components than a home PC, and despite the fact that manufacturers tend to prioritize their production, the demand for machines for data centers is so high that there is a widespread shortage that is even greater. serious than in the mainstream industry. Major Taiwanese server makers such as Inventec, Mitac Computing and Wiwynn complain of component shortages, citing industry sources such as AMD or Intel.
Without server processors, the shortage is worse than ever
It takes more than three months to complete the process of building a complex chip like a processor using advanced process technology. This chip must then be tested and packaged properly, which greatly extends its normal delivery time. Inventen and Mitac Computing were unable to fulfill all the orders they had because they were unable to source components, according to the report, which logically limits their ability to generate revenue. despite strong demand for their products. DigiTimes notes that Mitac has been unable to meet about 30% of its orders due to a shortage of server chips.
Wiwynn, which primarily produces rack servers and has a customer base including Facebook, “was affected by a shortage of switches, as most of its orders are rack servers ”According to the source, who added that the problem does not appear to be improving this year.
Industry sources interviewed by the source said the server component shortage is unlikely to abate until at least the first quarter of 2022, but the more pessimistic say it could even last the entire year. next year, which is quite possible. right now they are working with delays up to 70 weeks.
What is the impact of the server industry on the consumer market?
To the average consumer, it may seem that the fact that there is a shortage in the server industry is not affecting the consumer market, but it is literally the opposite and it is for two reasons: The first is that when, after all, the professional market is the one that provides manufacturers with the highest revenues, which is why manufacturers like Intel or AMD always tend to prioritize their products for this market. The fact that the shortage in the server market is now so great could end up having an impact on the consumer market if manufacturers decide to divert resources away from it to fill the shortage in the professional market.
On the other hand, the fact that businesses and data centers do not have access to new servers can also have a devastating impact on the market: on the one hand, they will not be able to replace defective parts, which results in could lead to service interruptions or reduction of their infrastructure; Remember that we are not only talking about SMEs, but also giant companies like Amazon, Google, Facebook and others. On the other hand, it could also mean losses for these companies which could end up impacting the price that users pay for their products, so that ultimately the consumer market will be affected as well. .
