Wistron Corp. President Jeff Lin said the company cannot guarantee its AI server business will maintain triple-digit growth next year, even as the manufacturer remains optimistic about demand from customers including Nvidia Corp.
The Taiwan-based electronics maker has posted AI server revenue growth exceeding 100% for two consecutive years, Lin said at an investor conference on Tuesday. However, with a substantially larger revenue base compared to the previous two years, sustaining that pace has become more challenging, he said. The company will still target triple-digit expansion.
Lin projected overall operations will continue growing this quarter, with next year showing flat performance in the first quarter before gaining momentum sequentially. Fourth-quarter revenue is expected to rise from the previous period.
The company dismissed concerns that higher shipments of AI server racks could erode profitability. AI server products across all configurations—from L6 through L11—generate better margins than the notebook business, Lin said. Rising AI server revenue as a share of total sales benefits gross and operating margins, he added.
Wistron currently assembles L6 servers exclusively in Taiwan, while L10 production occurs primarily in Taiwan with some capacity in Mexico, where yield rates now match Taiwan facilities. The Zhubei expansion announced earlier is designated for another major client. Manufacturing at the Dallas facility starting next year will deliver profit margins comparable to Taiwan operations, Lin said.
The company allocated NT$30 billion ($966 million) for capital expenditures this year, likely representing a near-term peak. Next year’s spending will not exceed 2025 levels, with future expansion dependent on customer requirements.
