Compal Electronics (Compal; 2324) today held the opening ceremony for its Daxi AI Server Manufacturing Center, officially launching next-generation AI server manufacturing capacity. The facility marks a significant milestone in Compal’s global AI manufacturing strategy and reinforces its commitment to strengthening its role in the global AI supply chain.
The ceremony was hosted by Compal Chairman Ray Chen and attended by distinguished guests including Taoyuan City Mayor Simon Chang, Taoyuan City Council Speaker Chiu Yi-Sheng, Legislator Chiu Jo-Hua, Taoyuan City Councilors Lee Po-Fang and Liang Wei-Chao, and Taoyuan City Department of Economic Development Director Chang Cheng, who joined together to celebrate this important milestone. Their presence underscores Compal’s long-term commitment to Taiwan and its determination to further strengthen its strategic position within the global AI supply chain.
As demand for AI, high-performance computing (HPC), and large-scale data centers continues to grow rapidly, global demand for AI servers is also accelerating. To capitalize on these opportunities, Compal has been actively expanding its AI server R&D and manufacturing capabilities. In May this year, the Company announced its investment in the Daxi facility, including property acquisition, facility upgrades, and the deployment of advanced manufacturing equipment, with a total investment of NT$4.03 billion.
The launch of the Daxi Manufacturing Center will further enhance Compal’s competitiveness in AI server manufacturing, supply chain resilience, and global fulfillment capabilities.
The Daxi facility occupies approximately 7,654 square meters of land with a total floor area of approximately 21,706 square meters. The site will focus on the production of AI server systems (L10) and rack-level solutions (L11) and is expected to begin contributing revenue progressively starting in the 4Q 2026. With the addition of the Daxi Manufacturing Center, Compal’s AI server system production capacity is expected to double, while adding new rack manufacturing capabilities to support the growing demand for AI servers and data center infrastructure.
The Daxi AI Server Manufacturing Center will incorporate Compal’s proprietary liquid-cooling technology and focus on rack-level system integration, advanced cooling technologies, and high-density AI infrastructure manufacturing capabilities. These technologies are designed to address the increasing demands for higher power consumption, greater computing density, and enhanced reliability in AI server deployments, while delivering more stable and energy-efficient solutions for customers.
From a global manufacturing perspective, the Daxi Manufacturing Center will complement Compal’s existing production sites in Taiwan, Vietnam, and the United States. Through this coordinated manufacturing network, Compal will offer customers greater regional manufacturing flexibility, enhanced order support, and improved global delivery capabilities to meet the increasingly diverse supply chain requirements of AI customers worldwide.
Ray Chen, Chairman of Compal Electronics stated: “Compal is accelerating its transformation into an AI-centric company. In the AI server market, our customer base has expanded from traditional PC ODM customers into the NeoCloud, which has become a key driver of the rapid growth of our server business this year. Going forward, we will further expand our presence among Hyperscaler and Enterprise customers.” He further added, “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. Combined with the planned full-scale ramp-up of our Texas facility in the United States next year, we are highly confident in the growth momentum of our AI server business in 2027.”
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