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Quanta rubs its palms with glee

One of the ironic spin offs of US President-elect Donald “Prince of Orange” Trump’s protectionism plans are they will help the very companies he is trying to shut out of the US.

According to Quanta Computer’s senior vice president Mike Yang the Far Eastern hardware makers should do rather well out of Trump’s cunning plan.

Talking to the Nikkei,  US high-tech enterprises are expected to reduce their reliance on data centers abroad and add ones in the US. To do that they are going to need rather a lot of servers made. Quanta Computer has just set up two server assembly factories in California and Tennessee.

Quanta has stepped-up direct sales to data center operators and set up a wholly-owned subsidiary, Quanta Cloud Technology (QCT), specifically to promote direct sales.

Quanta plans to double production capacity at the two factories in the US over three years, Yang said.

The situation only applies to the big stuff. Quanta will keep most of its notebook production capacity in China, but with the bigger gear, production in the US reduces shipping time, and makes it easier to coordinate with clients if problems arise during design.

QCT has been selling servers directly to data center operators, and put competitive pressure on server vendors, ironically squeezing out US vendors like HPE, Dell and Cisco Systems.