Amazon Web Services has significantly increased its pull-in orders for AI server cabinets, according to supply chain sources, driving strong shipments from key partners including TSMC, Alchip Technologies, Wistron, and Hon Hai. Amazon raised its 2025 capital expenditure forecast to $220 billion, up from $200 billion, primarily for AI infrastructure such as data centers, servers, and networking equipment. CEO Andy Jassy expects AI computing demand to outpace supply through 2027 and into 2028. AWS's AI business and custom chip efforts have grown to $25 billion, maintaining triple-digit growth. Annapurna Labs' custom ASICs are mostly manufactured by TSMC using 3nm process. Alchip Technologies, a crucial partner, forecasts record quarterly revenue and profit. Wistron assembles AWS's ASIC AI cabinets and supplies switch trays, while Hon Hai provides CPU trays. Hon Hai rotating CEO Chiang Chi-heng targets over 40% market share in ASIC servers.
People in the supply chain say Amazon Web Services has lately accelerated pull-in orders for AI server cabinets. That has given shipments from TSMC, Alchip Technologies, Wistron, and Hon Hai Precision Industry a real lift. Amazon had earlier raised its 2025 capital expenditure plan to $220 billion from $200 billion, with most of that increase aimed at AI infrastructure—data centers, servers, and networking gear.
Amazon CEO Andy Jassy says demand for AI computing should stay ahead of supply through 2027. And he says demand already looks strong into 2028. AWS’s AI business, along with its in-house chip push, has reached $25 billion and is still posting triple-digit percentage growth.
Annapurna Labs, the AWS chip design arm, gets most of its custom ASICs made by TSMC on the advanced 3nm process. Alchip Technologies, one of the main partners behind AWS’s self-developed AI chips, expects record quarterly revenue and profit this quarter, then more growth in Q4. Demand for 3nm AI accelerators has come in above earlier estimates, and the design should be finalized before year-end.
AWS’s ASIC AI cabinets are put together by Wistron, which also provides switch trays. Hon Hai takes care of the CPU trays. Hon Hai rotating CEO Chiang Chi-heng said the company has made fresh progress in ASIC projects this year and is aiming to secure more than 40% market share in ASIC servers.
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