Compal's Taoyuan Daxi AI Server Manufacturing Center Commences Operations, Revenue Contribution Expected from Q4

Compal Electronics (2324-TW) held the ribbon-cutting ceremony for its Daxi AI server manufacturing center today (11th). The company announced that the Daxi plant will commence manufacturing AI server systems (L10) and racks (L11), with revenue contributions expected to begin gradually from the fourth quarter of 2023. This expansion will double the AI server system production capacity and add new rack manufacturing capabilities.

Compal has been actively investing in its AI server business. In May this year, it announced a total investment of NT$4.03 billion in the Daxi facility, covering real estate acquisition, factory renovation, and the introduction of advanced manufacturing equipment. The site spans approximately 7,654 square meters in land area and 21,706 square meters in building area.

The Daxi facility will not only produce AI server L10 and L11 systems but also integrate Compal’s self-developed liquid cooling technology. The company will focus on rack-level system integration, advanced cooling technologies, and high-density AI infrastructure manufacturing to meet the high power consumption, high-density computing, and high-reliability demands of AI servers, delivering more stable and energy-efficient end-to-end solutions.

Chairman Ray Chen stated that Compal’s customer base has expanded from traditional PC ODM clients to the NeoCloud market, which has become the primary growth driver for its server business in 2023. The next phase will involve further expansion into the Hyperscaler and Enterprise customer markets.

Chen said, “Two years ago, Compal was still a newcomer in the AI server field. But after several years of investment, we have successfully transformed and achieved significant progress. Our goal is to reach the mid-tier of the industry by the end of this year and continue advancing toward the top tier.”

Overall, Chen expressed confidence in Compal’s AI server business growth through 2027, noting that two facilities in Texas, USA, are expected to begin initial mass production by year-end 2023 and fully ramp up in 2024, complementing manufacturing bases in Taiwan and Vietnam.