Taiwan Tech_ MiTAC (3706.TW) mgmt. visit_ AI server growing with diversified customer base; Operating margin to continue enhancing

Company and Industry Overview * Company: MiTAC (3706.TW) * Industry: Server ODM (Original Design Manufacturer), AI servers, automotive electronics * Management Visit: Goldman Sachs visited MiTAC management in Taiwan on December 6, 2024. * Industry Trend: Continuous growth in Taiwan server ODMs, driven by the next generation full rack AI servers entering mass production. Key Takeaways * AI Server Growth: MiTAC's AI server business is growing with a diversified customer base, including public cloud, private cloud, edge computing, and enterprise clients. The company recently launched two new models to meet the needs of its diverse customer base. * Server and Automotive Electronics: Management remains positive on the server and automotive electronics business, driven by strong demand for AI servers from cloud service providers and increasing demand for automotive dash cameras and smart telematics solutions. * Diversified Production Sites: MiTAC's AI servers production sites are across Taiwan, Guangdong, Vietnam, and the US. The company is expanding capacity in Vietnam, Taiwan, and the US to better support clients' needs and mitigate the risks of geopolitical tensions. * New Product Launches: MiTAC recently announced new AI server products, including Nvidia MGX 4U servers and a new AI server model supporting the latest AMD MI325X GPUs. * Positive Outlook for 2025: Management expects both compute servers and AI servers to grow in the next year. Additional Information * Company Profile: MiTAC has 40+ years of experience in designing, manufacturing, and selling electronic products. It has three major subsidiaries: MiTAC computing, MiTAC digital, and MiTAC international. * Analyst Ratings: Goldman Sachs has a Buy rating on Hon Hai, FII, Quanta, Wistron, Wiwynn, and Gigabyte.