In addition to India, Inventec is also planning to establish plants in Southeast Asia and Japan for server production, mainly to serve its clients’ demand, according to company chairman Richard Lee.

Inventec’s main server clients are Hewlett-Packard (HP) and Dell, bu the ODM has seen the majority of server orders come from HP, which has made aggressive moves in the server market.

Last year, HP formed a joint venture with Foxconn Electronics (Hon Hai Precision Industry) for server production. Inventec’s capacity expansion in Southeast Asia and Japan is seen as a move taken to support HP’s server business.

HP’s joint venture with Foxconn is also expected to start impacting the server industry in the second half and is likely to undermine datacenter servers’ profitability due to fierce pricing competition, market watchers believe.

via Inventec to build server plants in Southeast Asia and Japan, says chairman.