Taiwanese AI server makers adjust financial strategies amid rising costs

Major Taiwanese AI server manufacturers are adjusting their financial and operational strategies to manage the high costs associated with the generative AI boom.

Quanta Computer is shifting from a ‘Buy & Sell’ model to a ‘Consignment’ model for certain high-value components. Due to rising prices for processors and memory, the company previously had to advance significant capital to secure parts, which pressured cash flow and margins. By having customers provide these expensive components, Quanta aims to reduce working capital requirements and alleviate pressure on gross margins. AI servers are expected to account for 80% of Quanta's total server revenue in the second half of the year.

Wiwynn is implementing an aggressive dividend policy to support its massive capital expenditures. The company has announced a significant stock dividend, effectively providing nearly two new shares for every one held. This strategy is designed to retain cash for AI-related investments—such as expanding production capacity in the US and Mexico—while also increasing market liquidity by lowering the entry barrier for investors in its high-priced stock.