If you read newspapers and news recently, you can see reports that the growth of servers will drive a company’s profits. So what is the structure of the server industry? What is upstream and downstream? What is the positioning of Taiwanese companies in the industry? This article will take you step by step to understand the industry.
Highlights of this article
1. Server introduction
2. Introduction of some components
3. Taiwanese manufacturer
It is a computer that integrates hardware and software and can provide specific services to client computers on the network. The overall composition is similar to that of a personal computer. High-end computers, but with the hot swapping function of the server equipment, that is, when the hardware equipment fails, the spare components can be switched without shutting down.
Brand factories generally do not engage in design and assembly, but focus on R&D and marketing. After observing market trends, they entrust ODM to produce, and then sell them to end customers such as governments, banks, and enterprises, and provide after-sales service. The well-known manufacturer is “DHL”, Dell, HPE, Lenovo, and Chinese brands Inspur, Huawei, etc., which have risen in recent years.
The original ODM manufacturer is a pure OEM. If the ODM has a direct cooperative relationship with a CSP (Cloud Service Provider), instead of going through the brand factory, the service provider directly places an order to purchase customized equipment, which becomes an ODM Direct , generally known as white-brand server manufacturers, the more well-known manufacturers in Taiwan are Hon Hai (2317), Wistron (3231), Quanta (2382) and so on.
With the increase in server demand from CSPs such as AWS, Microsoft Azure, GCP, Meta, and Alibaba, which require low-cost and customized products, the market share of ODM Direct continues to increase.
(10.4% in 1Q17 to 26.7% in 2Q21)
Servers can be divided into Tower, Blade and Rack according to the chassis structure
At present, the servers are mainly enterprise users, followed by large-scale servers in data centers. North America and China are the top two markets in the world. The Chinese government vigorously supports local products for the reasons of 5G and network information security. (Huawei) and other server suppliers are growing rapidly; due to the rapid growth in the demand for online information, AWS, Microsoft, Google, Alibaba, Tencent, Meta, Baidu, the top seven cloud management platforms in the world have set up data centers in various places to serve the industry. main growth drivers.
In addition, the Internet of Things (IoT) leads the flexible edge computing architecture, and builds more diverse computing structures, software and hardware services between the cloud and terminals, driving technology to the edge; 5G is gradually commercialized, prompting micro data centers and edge The growth of computing will promote new applications such as smart medical care and transportation.
In 2022, CSP industry capital expenditure plans are positive, server shipments are supported, and Intel and AMD are expected to launch new CPUs, which will drive demand for machine replacement, high-performance computing, and high-speed transmission, and related supply chains will be affected accordingly. Hui, the following introduces the relevant components and related Taiwan manufacturers.
2.Introduction of components
📍BMC(Baseboard Management Controller）
Provide administrators with direct management of server hardware. The core control components on the motherboard are used to manage and connect modules and components with different functions on the host board. There are multiple sensing components to detect and report individual components. Whether there is an abnormal situation is closely related to the development of the CPU, which is often accompanied by the synchronous upgrade of the CPU.
📍PCB(Printed Circuit Board)
A circuit board that installs, fixes, and connects electronic components and provides component current. Any electronic product needs to use PCB to fix integrated circuits (ICs) and electronic components, and connect different components with copper wires to allow electronic signals. can flow.
PCB types can be divided into Rigid and Flexible according to their softness, and can be divided into single-sided, double-sided, multi-layer, and high-density interconnect (HDI) according to their appearance. In the process of continuous upgrading of the server, the requirements for the number of PCB layers are also getting higher and higher. For example, the number of PCB layers of AMD Naples in 2017 is 8~12L, and the number of PCB layers of the Genoa platform launched in 2022 is 16~20L; The technical difficulties of calibrating, pressing, drilling, and circuit making also make the price continue to rise with the number of layers.
📍CCL(Copper Clad Laminate)
It is the main material of PCB. It accounts for 5~70% of the cost depending on the number of PCB layers. It is composed of metal foil, resin and reinforcing material. In order to meet different PCB requirements, it needs to have good thermal conductivity, chemical resistance, high temperature resistance, etc. For special requirements, the server must meet high-frequency and high-speed characteristics to ensure the stability and integrity of the signal.
With the continuous upgrade of the server, the requirements for CCL are gradually increased. For example, the Intel server platform has been upgraded from Whitley to Eagle Stream, and the CCL material has been upgraded from Low Loss level (Df 0.009~0.006) to Ultra (Very) Low Loss level (Df 0.006). ~0.005).
(Dielectric Loss Dissipation Factor, Df)
Mainly for the upper and middle reaches, the upstream is zero components, and the middle reaches are ODM and ODM Direct. Some Taiwan factories are listed below, and a random one is selected for a brief introduction:
1️⃣Products: desktop computer case, industrial computer case, server case, etc.
2️⃣Market share: about 12.8% of the global server case
3️⃣2020 sales area ratio: China 46%, the United States 30%, Taiwan 13%, other 11%
1️⃣Fabless IC design company, after the product design is completed, it needs to be handed over to the foundry and packaging and testing factory
2️⃣The global market share of BMC chips is about 72%
3️⃣The proportion of revenue in 2020: about 95% of BMC, about 5% of PC audio and video extension chips
📍Connectors: (3533), (3526), (3217)
1️⃣Products: CPU Socket, DDR slot, I/O connector, PCIe slot, etc.
2️⃣CPU Socket is the second largest manufacturer in the world, with a market share of 33%
3️⃣Proportion of revenue: server 27%, DT25%, NB14%
4️⃣Customers: Intel, AMD, Inventec, Quanta, etc.
📍PCB: (2368), (8155), (5469)
1️⃣Products: high-end multilayer board, thick copper board, backplane, HDI, etc.
2️⃣ The proportion of terminal applications in 2020: 51% for servers, 21% for NB, 19% for Netcom, 9% for others (receivers, automobiles, IC test boards, etc.)
3️⃣Customers: AT&T, Arista, Cisco, Dell, HP, Lenovo, Hon Hai, Quanta, etc.
1️⃣2020 revenue ratio: CCL 62.72%, prepreg (PP) 30.4%, multi-layer laminate 6.38%
2️⃣2020 sales area: domestic sales 23%, export (Asia) 76%, export (other) 1%
3️⃣Customers: PCB manufacturers Baicheng, HannStar, Qingsheng, Jingpeng, etc.
📍Power supply: (2308), (2301), (6282)
1️⃣1Q21 revenue ratio: 60% for power supply and components, 25% for infrastructure department, 15% for automation department
2️⃣ There are many products and scattered sales targets. In 108, 109 and the first quarter of 110, no customer exceeded 10%
📍Heat dissipation: (3017), (3324), (6230)
1️⃣ Products: heat dissipation (heat sink, fan, vapor chamber, water cooling plate, etc.), computer case, system assembly products, etc.
2️⃣2021 revenue ratio: cooling products 54.2%, system products 18.9%, computer cases 12.5%
3️⃣2020 sales area ratio: Asia 87%, America 7%, Europe 6%
Users can understand the semiconductor industry more through this database. If you have any further queries or suggestions regarding the TEJ database, please do not hesitate to send your inquiries or ideas by phone or by email to us.