Compal Expands AI Server Capacity in Taiwan, Vietnam, and the U.S., Aiming for 30-40% Revenue Share by Next Year

Compal Electronics (2324-TW) officially launched its AI server manufacturing center in Daxi, Taoyuan today (11th). Chairman Chen Ruei-Tsung announced in a post-event media briefing that, driven by strong AI demand, Compal is simultaneously expanding production capacity in Taiwan, Vietnam, and the United States. The company expects AI server revenue to account for 10% of total revenue in 2023 and aims to increase this to 30–40% by 2024.

Chen Ruei-Tsung emphasized that the Daxi facility will not only house automated production lines for L10 and L11 models but will also establish a research and development center, positioning it as Compal’s central hub for AI server development, R&D, and mass production. He projected that the Daxi plant will reach full capacity by the second half of 2024, primarily serving NeoCloud customers.

Regarding the Texas facility in the U.S., Chen stated that the construction of two plants is progressing as planned, with trial production expected to begin by the end of 2023 and full operations commencing in the first quarter of 2024. The Texas site will be capable of producing L6 to L10, and even L11 models, targeting hyperscaler and enterprise-level clients. Demand is expected to ramp up significantly from late Q4 2023 into early 2024.

On the Vietnam front, Chen noted that the Vietnam plant serves as Compal’s primary L6 production base in Southeast Asia. It currently operates four SMT production lines, with plans to add six more, bringing the total to ten SMT lines, which are expected to be fully installed shortly.

Currently, Compal’s main AI server customers are centered around NeoCloud, with the L10 model being the largest contributor. AI server revenue already accounts for a high single-digit percentage of total revenue, with a target of reaching 10% by the end of 2023. As hyperscaler and enterprise clients begin to place orders, the company anticipates the AI server revenue share will rise to 30–40% in 2024.

Additionally, Compal continues to expand its server-related workforce. The company currently employs approximately 890 to 900 personnel in this segment and expects to grow this number to between 1,000 and 1,200 by 2024.