TrendForce predicts around 2% fall in high-end AI server shipments in China

In its latest findings TrendForce reported that Chinese CSPs such as ByteDance, Baidu, Alibaba, and Tencent (BBAT) are projected to have a combined shipment share of approximately 6.3% in 2023, but in the year 2024 this is estimated to go down to 4% in 2024, as per TrendForce. Here are more details shared by TrendForce: NVIDIA’s most recent FY3Q24 financial reports reveal record-high revenue coming from its data center segment, driven by escalating demand for AI servers from major North American CSPs. However, TrendForce points out that recent US government sanctions targeting China have impacted NVIDIA’s business in the region. Despite strong shipments of NVIDIA’s high-end GPUs—and the rapid introduction of compliant products such as the H20, L20, and L2—Chinese cloud operators are still in the testing phase, making substantial revenue contributions to NVIDIA unlikely in Q4. Gradual shipments increases are expected from the first quarter of 2024. The US ban continues to influence China’s foundry market as Chinese CSPs’ high-end AI server shipments potentially drop below 4% next year TrendForce reports that North American CSPs like Microsoft, Google, and AWS will remain key drivers of high-end AI servers (including those with NVIDIA, AMD, or other high-end ASIC chips) from 2023 to 2024. Their estimated shipments are expected to be 24%, 18.6%, and 16.3%, respectivel...