Amazon Increases Orders for AI Server Racks; TSMC, Silex, Wistron, and Foxconn Report Strong Shipments

Huo Xing Cai Jing reports that supply chain sources indicate Amazon’s AWS, the leading North American cloud service provider, has recently increased orders for AI server racks, driving strong shipment volumes from partners including TSMC, AceXcel, Wistron, and Hon Hai. Amazon recently raised its capital expenditure forecast for this year from an initial $200 billion to $220 billion, primarily to support AI infrastructure needs such as data centers, servers, and networking equipment. Amazon CEO Andy Jassy expects the supply-demand imbalance in AI computing power to persist through 2027 and has already identified strong demand extending into 2028. AWS’s AI business and in-house chip initiatives have grown to $25 billion, maintaining triple-digit percentage growth. Most of AWS’s custom Annapurna Labs ASIC chips are manufactured by TSMC using its advanced 3nm process. AceXcel is a key partner in AWS’s in-house AI chip development and anticipates record quarterly revenue and profits this quarter, with continued growth expected in the fourth quarter; demand for 3nm AI accelerators has surpassed earlier estimates, with design finalization expected before year-end. Wistron is responsible for assembling AWS’s ASIC AI server racks and supplying switch trays, while Hon Hai has entered the CPU tray market. Hon Hai’s Co-CEO, Jason Chiang, stated that this year has seen new progress in ASIC projects, with a target to capture over 40% market share in ASIC servers.