Compal Opens AI Server Hub, Targets Fourth-Quarter Revenue Boost

Compal Electronics has invested about NT$4.03 billion ($126 million) in an AI server manufacturing center in Daxi, Taoyuan, as surging generative-AI workloads drive demand for high-performance computing infrastructure. The facility handles L10 system integration and L11 rack production and incorporates advanced liquid-cooling technology, strengthening the Taiwanese electronics maker’s push to win more business from hyperscalers and enterprise customers.

The Daxi center has formally begun operations and is expected to start contributing revenue in the fourth quarter of 2026. Compal said the facility will double its AI server system capacity, expanding its ability to assemble dense computing equipment and manage the higher thermal loads associated with AI hardware. The additional capacity is intended to support further orders from cloud-platform operators and corporate clients.