TAIPEI (Taiwan News) — Compal Electronics opened a NT$4.03 billion (US$124.89 million) AI server manufacturing center in Taoyuan on Tuesday as it expands production in Taiwan, the US, and Vietnam.
The facility, which focuses on AI server systems and racks, was converted from an existing factory in just three months, per CNA. Compal plans to begin generating revenue from the center in Q4 after customer certification, while also establishing a research team to link AI server development with manufacturing.
The 7,654-square-meter site has about 21,700 square meters of floor space and will deploy Compal’s liquid-cooling technology, per Liberty Times. The center will focus on rack-level system integration, advanced cooling, and high-density AI infrastructure to meet the power and reliability demands of AI servers.
Compal Chair Chen Jui-tsung (陳瑞聰) said the company’s server business accounted for 2% of revenue last year, rising to 5% in Q1 this year. The company aims to raise that share to 10% by the end of this year and 30% to 40% next year, per Nikkei Asia.
Chen said Compal’s two Texas plants are scheduled to begin trial production by the end of this year and mass production early next year, while a new plant in Vietnam is also being fast-tracked, per Nikkei Asia.
Chen said Compal’s AI server customers are mainly neocloud providers. As its Texas plants come online, the company plans to expand into the hyperscaler and enterprise markets, he added.
