[News] Dell Taiwan Highlights Significant Improvement in GPU Supply Times

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The GPU shortage issue has reportedly been alleviated. Per a report from Economic Daily News, it has led to a significant improvement in delivery times for major server brands like Dell. Delivery times have decreased from 40 weeks at the end of last year to a normal cycle of 8-12 weeks now, and sometimes even shorter.

Dell is reportedly capitalizing on the opportunities in artificial intelligence (AI), according to the same report citing Terence Liao, General Manager of Dell Taiwan, who indicated on April 9th that the company is experiencing strong server orders and demand in the Taiwanese market. This surge is primarily due to the robust AI needs within Taiwan’s corporate sector.

As for the previously challenging GPU shortage issue affecting the industry, delivery times have significantly improved this year following the expansion of CoWoS (Chip-on-Wafer-on-Substrate) capacity.

Terence Liao mentioned that towards the end of last year, there was indeed a tight supply of NVIDIA’s H100 GPUs, leading to Dell’s delivery times averaging around 40 weeks and competitors experiencing even longer delays of up to 52 weeks. However, starting from February this year, GPU supply has notably improved. For Dell in Taiwan specifically, delivery times have returned to a normal cycle of 8-12 weeks, and sometimes even shorter.

With the GPU shortage issue eased, Dell Taiwan openly acknowledges that they currently have a high volume of server orders and strong demand, largely driven by Taiwan’s enterprises seeking AI solutions. Terence Liao analyzed that, from the perspective of the Taiwan market, industries actively adopting AI include manufacturing, healthcare, government, finance, and telecommunications sectors.

As per Dell’s GenAI Pulse Survey, 78% of IT decision-makers express anticipation for AI-driven solutions to unleash potential within enterprises, viewing AI as a means to enhance productivity, streamline processes, and reduce costs.

Moreover, from a corporate budget perspective, the allocation for AI servers has increased from around 10% in the past to approximately 20% currently. This shift indicates a heightened commitment within the Taiwanese industry towards investing in AI.

Terence Liao emphasized that the demand for AI servers primarily comes from Cloud Service Providers (CSPs) and general enterprises. While CSPs still represent a significant portion of this demand, Dell is particularly pleased to see an increase in demand from general enterprises.

Previously, TrendForce underscores that the primary momentum for server shipments this year remains with American CSPs. However, due to persistently high inflation and elevated corporate financing costs curtailing capital expenditures, overall demand has not yet returned to pre-pandemic growth levels. Global server shipments are estimated to reach approximately. 13.654 million units in 2024, an increase of about 2.05% YoY. Meanwhile, the market continues to focus on the deployment of AI servers, with their shipment share estimated at around 12.1%.

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(Photo credit: Dell)