Wiwynn Corp., a major server supplier tied to Nvidia (NASDAQ: NVDA), is cautioning that the global AI infrastructure boom faces a deepening and prolonged component squeeze across the supply chain.
Chair Emily Hong said demand for data center hardware could remain intensely elevated over the next three to five years as major customers continue scaling capital expenditure.
Customers including Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT) are among those driving sustained pressure on hardware supply across the data center sector.
Hong noted that the shortage is no longer concentrated solely in memory chips, with networking chips and other key components also facing significant supply constraints.
The scramble for critical parts is pushing hardware prices to record highs and threatens to slow or raise the cost of the broader global AI buildout.
Hong told Bloomberg News that the shortage picture keeps shifting, making it difficult to identify which components could emerge as the next bottleneck.
“The items that are in short supply are somewhat different every year,” Hong said, highlighting the unpredictable nature of supply disruptions across the hardware ecosystem.
She added that some relief from supply constraints may begin to materialize in late 2027 or 2028, placing the recovery timeline further out than many in the industry had anticipated.
That warning positions Wiwynn alongside other industry figures who have flagged supply-demand imbalances as AI spending continues to accelerate at pace.
Wiwynn now generates more than 80% of its sales from American customers, making the United States a central focus for its expansion strategy over the coming years.
The company’s first plant in El Paso, Texas is already operational, and Wiwynn plans to bring three additional plants online within the next two years.
Hong confirmed that Wiwynn has secured sufficient power supply for AI server rack assembly in Texas, a critical requirement as demand continues to scale rapidly.
The company completed a $2 billion convertible bond issuance in March, though Hong indicated that amount may fall short of covering capital expenditure needs over the next several years.
Wiwynn may look to raise additional funds next year through global depositary receipts and convertible bonds to support its expanding manufacturing and infrastructure ambitions.
