Server Maker Warns of Global AI Infrastructure Shortages

Wiwynn Corp., a significant producer of Nvidia servers, has issued a warning about potential shortages of critical data center components, extending beyond memory chips. These supply issues could hinder or increase the cost of the global AI infrastructure expansion. Company chair Emily Hong anticipates sustained high demand for data center hardware over the next three to five years, fueled by increased capital expenditures from major technology firms.

The escalating demand for essential components, from memory to networking chips, has propelled hardware prices to unprecedented highs. Hong noted that the specific items facing supply constraints tend to vary annually. She predicts that some relief from these limitations might emerge in late 2027 or 2028, indicating an ongoing challenge for the industry. Wiwynn is experiencing significant growth, with over 80% of its sales currently derived from U.S. customers. The company is actively expanding its presence in America, with its first plant in El Paso, Texas, already operational. Plans are in motion to establish three additional plants within the next two years, a move supported by the availability of sufficient power supply crucial for AI server rack assembly in Texas.