Compal Electronics held the opening ceremony for its Daxi AI Server Manufacturing Center on August 11, 2026, thereby officially launching its next-generation global AI server manufacturing capacity.
It is well to be noted that the facility is a key milestone in Compal’s global AI server manufacturing strategy and highlights its resolve to further solidify its position when it comes to the global AI supply chain.
Interestingly, Ray Chen, the Compal Chairman, hosted the ceremony, which was attended by honored guests such as Simon Chang, the Taoyuan City Mayor, Taoyuan City Council Speaker Chiu Yi-Sheng, Taoyuan City Councillors Lee Po-Fang as well as Liang Wei-Chao, and also Chang Cheng, the Taoyuan City Department of Economic Development Director, who all gathered to celebrate this significant milestone. Their presence reflects the long-term commitment by Compal to Taiwan and also a desire to progressively strengthen its strategic standing when it comes to the global AI supply chain.
With the rapid development of AI, high-performance computing – HPC and large-scale data centers, the global demand when it comes to AI servers is also increasing. To capitalize on these prospects, Compal has been diligently boosting its R&D and manufacturing capacity for AI servers. In May 2026, the company disclosed an investment in the Daxi facility totaling NT$4.03 billion, which included property acquisition, facility improvements, and the installation of advanced manufacturing equipment. The introduction of the Daxi Manufacturing Center will further strengthen the competitive edge of Compal in AI server manufacturing, supply chain robustness, and global fulfillment capabilities.
It is well to be noted that the Daxi site is built on roughly 7,654 square meters of land, with about 21,706 square meters of floor space. The site will specialize in the production of AI server systems – L10 and rack-level solutions -L11, and is projected to generate revenue incrementally from the fourth quarter of 2026. The Daxi Manufacturing Center will increase production capacity of Compal’s AI server system and offer new rack manufacturing capacity to meet increasing demand when it comes to AI servers as well as data center infrastructure.
Compal will leverage its exclusive liquid-cooling technology and concentrate on rack-level system integration, cutting-edge cooling technologies, and high-density AI infrastructure manufacturing capacity at the Daxi AI Server Manufacturing Center. The technologies are aimed at meeting the growing demand in case of higher power consumption, increased computing density, and greater dependability in AI server implementations while providing more stable and power-efficient solutions when it comes to customers.
The Daxi Manufacturing Center will supplement Compal’s present manufacturing locations in Taiwan, Vietnam, and the U.S. for a global manufacturing footprint. With this coordinated manufacturing network, Compal will provide customers with higher levels of regional manufacturing freedom, better order assistance, and enhanced worldwide delivery capabilities to satisfy the growing variety of supply chain needs of AI customers around the world.
According to the Chairman of Compal Electronics, Ray Chen, “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 to 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. 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. “