TAIPEI (Taiwan News) — Taiwanese electronics manufacturer Compal Electronics is accelerating its shift toward AI applications for servers and personal computers, as rising demand for AI infrastructure is reshaping the global hardware market.
Compal President Anthony Peter Bonadero said during an investor conference on Monday that the company’s AI server products have entered mass production, with server-related revenue expected to account for more than 10% of revenue this year, per Liberty Times.
Bonadero said Compal aims to increase the share of revenue generated by servers to 20% by 2027 as part of its medium-term goal, marking a transition from a traditional PC original equipment manufacturer to an AI system solutions provider.
He added that AI PC penetration is projected to reach 50% to 60% this year and climb further to 80% by 2027. As AI PCs adopt higher-performance processors and larger memory configurations, average selling prices are expected to rise, supporting revenue growth.
Bonadero said Compal is expanding its AI server operations, with capital spending set to reach NT$18 billion (US$57 million) this year. Investments will focus on building server labs in Taiwan, expanding production lines, establishing assembly operations in Vietnam, and setting up a factory in the US to strengthen mass production and delivery capabilities for AI products.
The company is also broadening its customer base to include cloud service providers, enterprise clients, and retail channels.
In terms of product development, Compal has unveiled a high-density liquid-cooled AI server and introduced a platform based on NVIDIA’s GB300 architecture, incorporating RTX AI technologies. The move reflects an upgrade from single-board manufacturing to integrated systems and cabinet-level solutions, per Liberty Times.
As competition in the AI server market shifts toward standardization, Bonadero said Compal’s strengths lie in its end-to-end manufacturing capabilities and system integration expertise, including product design, mass production yield, regional after-sales service, and maintenance support.
The company is also developing system-level products such as L10 and L11 configurations and advancing toward rack-scale solutions to meet anticipated demand for large server racks and high-power computing. These efforts are intended to enhance added value and long-term competitiveness.
Bonadero said Compal’s AI transformation extends beyond products, encompassing research and development, supply chain management, and quality systems. Through automation and digitalization, the company aims to boost manufacturing efficiency and competitiveness.
Alongside progress in servers, Compal is expanding into 5G, medical, automotive, and industrial applications, intending to increase the proportion of non-PC business and achieve a more balanced revenue structure.
