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Quanta Forecasts Strong Growth in Server Shipments and Automotive Business for 2023

Amidst steady material supply, Quanta anticipates double-digit growth in server shipments, with automotive electronics poised for significant revenue contribution
q 2382.TW Blue Chip 150 Tech 350
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Quanta, a leading electronics OEM, is gearing up for a robust year of operations. With a strong market demand and a stable supply of materials from Huida, the company is internally projecting that its server shipments will maintain a double-digit growth rate this year. Despite this, general-purpose server shipments are expected to remain flat compared to last year.

The automotive business, known for its high gross profit margin within Quanta’s product lines, is projected to contribute nearly 10% to the company’s overall performance this year. This estimate aligns with the previous year’s performance in the notebook shipment sector.

Looking ahead to 2025, Quanta anticipates that the Artificial Intelligence Personal Computer (AI PC) will transition more prominently from the commercial to the consumer market. For 2023, notebook shipments are expected to fall between 45 million and 47 million units, marking a decrease of about 20% year-on-year.

In terms of AI servers, Quanta is currently undertaking board-making operations in Taiwan and Thailand, with final testing and assembly taking place in the United States and Europe. The company is closely monitoring Taiwan Semiconductor Manufacturing Company (TSMC) for production capacity developments. With the expected launch of Huida H100 products in the latter half of this year, Quanta foresees significant growth in this sector, without the risk of repeated orders from downstream customers.

Quanta’s automotive business, which recorded significant growth with traditional European and American automakers and new orders from Chinese clients, is set to continue expanding. Automotive electronics turnover is estimated to represent 6% to 9% of the total revenue for the year, with a particular focus on the development of self-driving technology.

Regarding production capacity, 80% of Quanta’s laptops are manufactured in Chongqing, China, with the remaining 20% in Shanghai. The company is also expanding its manufacturing footprint, with a new factory in Vietnam slated for trial production by the end of the year. Additionally, server surface mount technology (SMT) production has been relocated to Taiwan and extended to Thailand post the U.S.-China trade war, with terminal assembly in Germany, Europe, and the United States. Shanghai’s server production capacity is primarily dedicated to Chinese customers, and automotive production lines are spread across Shanghai, Taiwan, and Mexico. This strategic positioning underscores Quanta’s commitment to diversifying its manufacturing base while responding to global market demands.

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