Huawei server shipments bottom out and rebound, doubling to 9,00

xFusion Server Shipments Plunge 18% in Q3; x86 Business Faces Du

Core Overview: Contrarian Pullback, Shipments Fall Below the 100,000 Mark According to the latest data from DataTrack, xFusion, a major Chinese server manufacturer, recorded x86 server shipments of 90,000 units in the third quarter (Q3) of 2025. This represents a significant synchronous decline of 18.2% compared to the previous quarter (110,000 units) and the same period last year (110,000 units). This figure not only interrupts the recovery trend seen since the beginning of 2025 but also hits a new low for the past year. Compared to IDC statistics showing the Chinese server market's hot performance with Q3 revenue growing 37.6% year-on-year, xFusion's volume contraction demonstrates a market characteristic of "divergence between volume and price," suggesting the company may be sacrificing low-margin general-purpose models to focus on high-unit-price AI products. Key Details: General x86 Weakness vs. The Rise of Accelerated Computing Observing the market structure, the shipment decline was mainly concentrated in standard x86 architecture products: Volume Contraction: Q3 shipments fell to 90,000 units, dropping back to late 2024 levels (90,000 units), indicating that enterprise procurement demand for traditional general-purpose servers has entered an inventory adjustment period. Architecture Shift: According to IDC reports, global non-x86 server (primarily AI/GPU specific architecture) revenue surged 192.7%, while x86 grew only 32.8%. As the former Huawei x86 business unit, xFusion faces fierce price wars from Lenovo and Inspur (IEIT) in the x86 sector, while customer budgets are shifting significantly to AI computing power, squeezing traditional production lines. Deep Analysis: Strategic Adjustments on the Eve of Listing and Supply Chain Factors Market analysis points out that the fluctuation in xFusion's shipments may stem from two major factors. First, the company initiated IPO tutoring (CITIC Securities) in early 2026; to optimize its financial structure, it may have actively cut low-profit orders in the second half of 2025 to pivot towards high-margin liquid cooling and AI solutions. Second, supply chain restrictions remain a hidden concern; with continued US export controls on high-end x86 chips, product lines relying on Intel/AMD processors may face quota fluctuations, forcing limits on shipments. The Commercial Times also noted that despite record revenues, some Chinese manufacturers are seeing market share converge due to chip bans. Outlook and Risks: Short-term Inventory Adjustment, Mid-term Focus on IPO Effects Short-term (1-2 months): Entering the traditional peak season of the fourth quarter, it is expected that xFusion will attempt to boost shipments to improve annual performance, targeting a return to the 100,000 unit level, though close observation is required regarding whether enterprise IT budgets continue to be crowded out by AI projects. Mid-term (3-6 months): As the IPO process advances, market focus will shift to its "non-x86" or "domestic computing power" layout. If xFusion can successfully leverage the integration advantages of liquid cooling technology and the Ascend ecosystem, it is poised to offset the decline in the x86 business; conversely, if it relies overly on traditional x86 architecture, under the double blow of Xinchuang (IT application innovation) policies and chip bans, its market share risks erosion. Internet Search Reference Sources https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/chinese-ai-server-leader-xfusion-hires-investment-bank-first-step-towards-listing https://www.storagereview.com/news/global-server-market-sets-new-revenue-record-in-q3-2025-as-ai-infrastructure-spending-accelerates https://ctee.com.tw/news/20251217700147-430502