TAIPEI (Taiwan News) — Taiwan contract manufacturer Compal Electronics is looking to remake its business mix by expanding in AI servers and infrastructure.
Servers made up about 5% of Compal’s first-quarter revenue, and the company wants that figure to reach 10% by the end of this year, Compal President Anthony Peter Bonadero said at Computex Taipei, per CNA.
The larger target is a 50-50 split between PC and non-PC revenue in 2027. Compal’s revenue still leans more heavily on PCs, which brought in nearly two-thirds of sales in the first quarter. The rest came from newer growth areas, including servers, communications, and medical products, according to the report.
Bonadero said Compal entered the AI server market later than some rivals, but the company is using that timing to focus on what customers now need most. He said higher average selling prices for server and infrastructure products have helped clarify the company’s roadmap.
Compal is also shifting more server production closer to North American customers. Bonadero said its Texas site should be available in about six weeks, with customer signoff targeted for the second half of the year, per the report. The plant will later take on L10 and L11 work, covering system assembly and full server integration.
Bonadero noted that due to the independent power grid in Texas as well as the state's ample capacity in renewables, he could be confident Compal’s production lines there would operate without interruption.
Beyond Texas, Compal is adding capacity in Taoyuan and keeping board-level manufacturing largely in Vietnam. Compal has expanded its engineering team from 600 people 18 months ago to 1,000.
