Gigabyte's AI Ambitions Tinged with Uncertainty Amid Tariffs and Currency Fluctuations
- By Meryl Kao / Staff Reporter
Gigabyte intends to establish an artificial intelligence production line within the United States
Graphic card and motherboard titan Gigabyte Technology Co (原名: 技嘉) has set its sights on the AI sector, planning to establish an AI server assembly line stateside later this year. However, the company's core business in the US remains stable, with sales of its AI servers contingent on the development of tariff policies, as revealed by Gigabyte chairman Dandy Yeh (葉培城).
Yeh's comments came after the company's annual shareholders' meeting in Taipei, referring to the "reciprocal" tariffs announced by President Donald Trump on April 2, which were later postponed for 90 days.
Despite optimism surrounding AI developments and the release of new PC processors, uncertainties loom for Gigabyte, said Yeh, due to potential tariff shifts and recent fluctuations in the New Taiwan dollar's value against the US dollar. This exchange rate surge inadvertently places pressure on the company's operations, affecting margins.
While the exact financial impact is yet to be calculated, Yeh anticipates foreign exchange losses. Despite this looming setback, he remains hopeful for a strong Q2 revenue, asserting, "We've seen record-breaking revenue last month, and I still believe second-quarter figures will remain robust."
The AI market demand has fueled a 55.2% monthly growth and a 107.9% year-on-year hike in Gigabyte's revenue, reaching a new peak at NT$46.73 billion (US$1.56 billion). Overall, the company's cumulative revenue for the first five months of the year reached NT$142.57 billion, a milestone for the period.
Ahead of potential tariff changes, Gigabyte engaged in front-loading shipments, likely contributing to this revenue surge. Yeh admits that the effect of these practices may wane in the coming months, but is confident that the impact will be limited to the US, leaving other markets undisturbed.
To further expand its motherboard sales in China, Gigabyte has teamed up with semiconductor distributor Weikeng Industrial Co (威健實業). The goal is to boost retail sales by packaging motherboards with processors from Advanced Micro Devices Inc, with a focus on the Chinese market.
Gigabyte has also entered the gaming PC market with its AORUS line, continuing product development despite Nvidia Corp's move from H200 to B200 chips during the first half of this year.
In terms of publicly available information, it's worth noting that there is no confirmation of a dedicated AI server assembly line currently operating in the United States by Gigabyte Technology, as of June 2025. The company's recent announcements and press releases focus on its global AI infrastructure strategy, such as high-density rack-scale solutions like GIGAPOD, without mentioning US-based assembly operations or localized manufacturing.
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- Amid the uncertainties caused by tariffs and currency fluctuations, Gigabyte Technology Co's chairman, Dandy Yeh, has highlighted that tariff policies and foreign exchange rates impact the profit margins of their AI server sales in the US.
- Despite potential tariff shifts and recent fluctuations in the New Taiwan dollar's value against the US dollar, Gigabyte remains positive about maintaining strong revenue in Q2, with the help of technological advancements in AI, finance, business, and artificial-intelligence industry.
