Pandemic may disrupt server supply chain in 4Q20

Demand for cloud servers may be rebounding in the fourth quarter of 2020, but the coronavirus pandemic remains a black swan threatening to disrupt components supply and assembly operations at server ODMs. But the long-term outlook for the server sector remains promising, with Microsoft having just announced a plan to build an Azure datacenter in Taiwan, which reportedly will install 15,000 servers. In the semiconductor sector, foundry capacity has been in shortages, and UMC is seeking acquisition targets to increase its 8-inch fab capacity.

Cloud server demand picking up, but facing pandemic variables: Cloud server demand has started picking up in the fourth quarter of 2020, but concerns have emerged whether a fresh wave of coronavirus infections in the US and Europe will again hit shipments from the supply chain, according to industry sources.

Around 15,000 servers needed for new Microsoft Azure datacenter in Taiwan: An estimated 15,000 servers will be needed to support Microsoft’s new Azure datacenter that will be unveiled in Taiwan by the end of 2021 at the earliest, according to industry sources.

UMC eyeing idle 8-inch fabs for acquisition: Pure-play foundry United Microelectronics (UMC) is looking at aging and idle 8-inch wafer fabs for acquisitions, according to company co-president SC Chien.