Compal opens AI server manufacturing centre in Taoyuan
Compal Electronics has opened its Daxi AI Server Manufacturing Centre in Taoyuan, Taiwan, following a total investment of NTD 4.03 billion, approximately EUR 108.95 million. The facility is expected to double Compal's AI server production capacity and adds rack-level manufacturing capabilities.
The Daxi facility covers approximately 21,700 square metres and will focus on AI server system production and rack-level solutions – L10 and L11. Revenue contributions are expected to begin in Q4 2026, according to a press release from the company.
The facility incorporates Compal's proprietary liquid-cooling technology and targets high-density AI infrastructure manufacturing – designed to meet growing demands for higher power consumption, greater computing density and enhanced reliability in AI server deployments.
The Daxi centre complements Compal's existing production sites in Taiwan, Vietnam and the United States, where a Texas facility is planned for full-scale ramp-up in 2027.
"AI is changing the world, and manufacturing capability will determine who can truly turn AI into reality. The opening of the Daxi Manufacturing Center is not only an expansion of our production capacity, but also a meaningful enhancement of Compal's overall capabilities across the AI supply chain," said Ray Chen, Chairman of Compal Electronics.
Compal notes that its AI server customer base has expanded beyond traditional PC ODM customers to include NeoCloud providers, with hyperscaler and enterprise customers identified as the next target segments.
