TAIPEI (Taiwan News) — Electronics manufacturer Compal Electronics is ramping up efforts to restructure and diversify its supply chain in response to rising geopolitical risks.

Compal Chair Chen Jui-tsung (陳瑞聰) said in his latest shareholder’s report that the company now operates production sites or partnerships in nine countries, per CNA. He added that it is considering expanding in North America to reduce regional dependency and boost supply chain flexibility.

He noted that while Compal’s computer and smart device businesses remain strong, further growth requires a third revenue pillar. Last year, the company identified five emerging sectors, AI applications, cloud servers, automotive electronics, advanced communications, and medical technology, as new investment priorities.

Geopolitical risks, including conflict in Ukraine and economic pressures in China, continue to disrupt global supply chains. Chen said recent US trade policy changes have added to inflationary pressures.

To mitigate these risks, Compal has diversified its supply chain, establishing a presence in China, Vietnam, and India. The company also increased capital for its subsidiaries in Poland and Indiana, aiming to serve global clients better.

Looking ahead, Chen said market research points to growth opportunities for computers, servers, and smartphones. Compal expects corporate PC upgrades and AI PCs to drive new demand, while focusing on enterprise and cloud partnerships to expand its AI server business.

In 2024, Compal reported a consolidated revenue of NT$910.25 billion (US$28.26 billion), a 4% decrease from the previous year, reflecting softer demand and business adjustments. Despite the revenue decline, operating margin increased to 1.6% and net profit attributable to the parent company jumped 31% to NT$10 billion.