The Impact of US-China Trade Conflict on Server Industry

Trade relations between the US and China saw significant changes in 2018 as the US government imposed a 10% tariff on ICT products imported from China, including servers. With a long development history in the Chinese market, 90% of the servers provided by Taiwanese server vendors are manufactured in China. Amid intensified tensions between the US and China and the emergence of national security concerns derived from China’s spy chips, the development of the server industry has become increasingly important.

1.Overview of US-China Trade Dispute

1.1 Conflict Intensifies as Neither Side Willing to Make Concessions

2. Development of US and Chinese Server Industries

2.1 US Dominance Challenged by China

2.2 China’s Spy Chip Incidents Ignites Network Security Concerns Worldwide

3. Impact on Taiwan’s Server Industry

3.1 Less Impact on Taiwanese Server Industry Chain

3.2 Greater Impact on Server Industry from Network Security Concerns; Some Vendors Move Production Lines out of China

4. MIC Perspective

Appendix

Glossary of Terms

List of Companies

List of Tables

Table 1 Major US Trading Partners in 2017

List of Figures

Amazon, Apple, Bloomberg, British Telecom, Foxconn, HPE, Huawei, IBM, Inspur, Inventec, Mitac, Orange, Pegatron, Quanta, Reuters, Sugon, Wistron

List Of Tables

Background of the US and China trade and the impact on the server industry in particular

Development of US, Chinese, and Taiwanese server industries and includes the implications of the trade dispute on them

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