Wistron's Capital Expenditure to Increase Next Year; Texas D2 Plant to Begin Operations

Wistron (3231-TW) Chairman Lin Hsien-ming discussed capital expenditure, stating that this year's capex is expected to reach approximately NT$60 billion. Based on current trends, he anticipates next year's capital expenditure will exceed this year's level. Additionally, Wistron has begun construction of its D2 plant, with operations scheduled to commence next year.

Wistron's total capital expenditure for the year is estimated at around NT$60 billion. Lin explained that part of this spending relates to projects deferred from the previous year, while another portion is for early preparation for next year. Given current industry trends and demand outlook, he believes next year's capex will surpass this year's.

Regarding the new D1 plant in Texas, CEO Lin Chien-hsun noted that the D1 facility is dedicated to producing products for NVIDIA (NVDA-US). Chairman Lin added that mass production of GB300 computing baseboards has already begun, and the next-generation Vera Rubin products are also expected to be manufactured and shipped from the D1 plant.

Lin Chien-hsun further mentioned that Wistron has already started building the D2 plant, which will be twice the size of the D1 plant. The product level is expected to expand from L6 to L10 and L11, and the facility is planned to serve customers beyond NVIDIA. Operations are scheduled to begin next year. He also indicated that if demand remains strong, a D3 plant could be considered in the future.

In addition to focusing on U.S. production capacity, Lin emphasized that Taiwan remains a crucial AI manufacturing and R&D base for Wistron. The Zhubei and Hukou campuses are nearly at full capacity, prompting expansion to Kaohsiung, where the new plant is expected to begin mass production in the first quarter of next year.

Regarding the Vietnam site, Lin explained that the company is currently constructing its second new campus, covering 37 hectares. While Vietnam has primarily produced PC-related products in the past, it will now extend into general-purpose server manufacturing.