TAIPEI (Taiwan News) — Compal said its new Texas plant costing NT$2.9 billion (US$92 million) will begin mass production of AI servers in the second half of this year, CNA reported.
The plant will serve as Compal’s AI server manufacturing base in the US and will also handle the assembly of high-end servers. In addition, the company will establish a server repair center in Texas.
To adapt to geopolitical shifts, the company said it will expand its manufacturing footprint in Vietnam and Taiwan. Its Vietnam facilities focus on networking products, wearables, and mobile hardware, while its Taiwan operations handle high-end server production and the liquid cooling technology used in AI servers.
Company Chair Ray Chen (陳瑞聰) expects shipments of laptops and smartphones to decline this year, mainly due to rising component costs and surging memory prices. However, demand for AI applications and infrastructure remains strong, with the server business expected to be the company’s main growth driver this year.
Chen noted the company will continue to deepen its relationships with key customers. The firm also plans to move away from a procurement model based on customer orders toward one driven by demand forecasting and early material preparation.
Compal’s non-notebook segment accounted for 29% of revenue last year, up from 25%, driven by growth in AI servers, automotive electronics, and networking products. The company said its servers are supplied to enterprise customers and major cloud service providers.
Compal said revenue from its 5G-related products doubled last year. It has also expanded into low-Earth orbit satellite communication technologies. The company added it is working with the Taiwan Space Agency to develop communication payload modules for LEO satellites.
The company reported first-quarter revenue of NT$201.3 billion, up 1.1% year on year. It expects shipments of PCs and AI servers in the second quarter to outperform the first.
It plans to invest NT$18 billion this year, including NT$6 billion for server manufacturing facilities and NT$4.2 billion for establishing its new headquarters in Taipei’s Shilin District.
