Compal Electronics opened its Daxi AI Server Manufacturing Center in Taiwan, investing NT$4.03 billion in property acquisition, facility upgrades and manufacturing equipment. The new facility is designed to double the company's AI server production capacity.
The Daxi center anchors Compal's global expansion. A full-scale ramp-up of its Texas facility is planned for 2027, complementing existing production sites in Taiwan and Vietnam.
Compal projects its AI server business will grow to 30 percent to 40 percent of total revenue. Chairman Ray Chen said the company is accelerating its shift toward an AI-focused revenue mix.
Compal entered the AI server market later than some rivals. Competitors including Foxconn, Wistron, Quanta and Inventec established earlier positions in the segment.
The Daxi center will produce AI server systems designated as L10 and rack-level solutions known as L11—configurations that address rising demand for computing density and power capacity in AI deployments.
The facility incorporates Compal's proprietary liquid-cooling technology, with an emphasis on rack-level system integration. The approach targets energy efficiency in high-density AI infrastructure.
The Daxi site spans approximately 7,654 square meters of land with a total floor area of about 21,706 square meters. Compal expects revenue contributions from the center to begin in the fourth quarter of 2026.
Compal's AI server customer base has expanded beyond traditional PC original design manufacturer clients. Chen said NeoCloud customers have become a key growth driver for the server business this year, and the company plans to expand further among hyperscaler and enterprise customers.
Chen said "manufacturing capability will determine who can truly turn AI into reality." He added that the Daxi opening strengthens Compal's position across the AI supply chain.
The coordinated manufacturing network across Taiwan, Vietnam and the United States gives customers regional flexibility and is intended to improve delivery capabilities for AI customers with diverse supply chain requirements.
The NT$4.03 billion Daxi investment reflects a capital allocation shift toward AI infrastructure, where specialized hardware demand and liquid-cooling expertise give Compal a basis for differentiation in a market where energy efficiency is an increasing priority.
