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The report finds shipment volume of the Taiwanese server system industry shipped at the full system/barebones levels and board levels grew 6.4% and 7.6% sequentially, and 10.7% and 14.9% year-on-year in the second quarter of 2018, reaching 1.03 million units and 1.24 million units, respectively, The growth was attributed mainly to the rising replacement demand following the rollout of new server processors and the sustained demand for data computing and storage across all regions. Based on the past trends, it is anticipated the industry's shipment performance in the second half of 2018 will outperform that in the first half. However, the ongoing US-China trade war could be a risk factor for the industry as over 50% of Taiwan's server systems are currently made in China.