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ODM Cloud server assembly firms adjust manufacturing footprints

By VentureOutsource.com Staff

Cloud server market uncertainty for ODMs in US-China trade dispute. Many ODMs perform assembly in Mexico (except for Quanta). Other geographies where ODMs perform various types of services, including assembly, include Taiwan, China, Philippines, Malaysia, India, Vietnam, Turkey, Germany, to name a few.

ODMs leading the networking equipment market are detailed below.

  • Hon Hai
  • Quanta
  • Wistron
  • Wiwynn
  • Inventec
  • Pegatron
  • Compal

While each ODM has their preferred production locations, the trade war has forced ODMs to formulate plans to diversity their production footprint. Many of these plans have been in place since 2018. As measures toward ODM facility diversification are stepped up, production costs could likely increase as ODM server program ramp-to-volume. This could cause both higher labor and shipping costs to come into play as ODMs still need to get equipment to point of consumption, which, in some cases, will be farther away.

For information on global production site(s) per ODM company, with services provided at each location, please contact us for more info.




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