Delta Electronic Expands Operations into Servers

March 08, 2001 by Jeff Shepard

Delta Electronic Inc. (Taiwan) has expanded its operations into servers, due to the growing demand for Web servers. Last year, Delta landed orders for assembling systems of low-range servers from NEC Corp. (Japan) on a contract-manufacture basis. Under the pact, Delta is due to supply NEC with nearly 100,000 units of servers annually.

Delta is the latest in a series of manufacturers of parts and components who have moved into the server market. Hon Hai Precision Industry Co. Ltd. and Universal Scientific International Industrial Co. Ltd. are local colleagues of Delta who did the same three years ago. Delta and its peers will soon be fighting on the same turf as more-established companies like Acer Inc., First International Computer Inc., Mitac International Corp., and Inventec Corp.

NEC's Taiwan division expects 2001 sales of servers to grow by 40 percent year-on-year in the local market. Dataquest statistics show that global makers produced nearly 3.9 million units of servers in total in 2000, up 14 percent from 1999 and 1.8 percentage points higher than the shipping growth of desktops during the same period.