TAIPEI (Taiwan News) — US-based Dell Technologies is expanding its artificial intelligence server production network in Taiwan by adding Compal Electronics to its roster of manufacturers.
The network already includes Wistron, Foxconn, Inventec, and MiTAC. Compal has secured a Dell server order valued at NT$100 billion (US$3.3 billion), with deliveries expected to begin in the second half of the year, according to CTEE.
The move comes amid rising demand for AI servers, which prompted Dell to procure 2,000 Nvidia GB200 server racks between May and July. Dell’s outsourcing orders are expected to grow further as the US accelerates AI infrastructure deployment next year.
Compal specializes in the research, design, manufacturing, and sales of 5C electronic products, covering computers, communication devices, consumer electronics, car electronics, and digital content-related devices. The company offers end-to-end capabilities from product design to mass production.
To support the new order, Compal’s board approved a US$300 million investment to establish a North American facility dedicated to server rack assembly and testing, with operations slated to begin in the first half of 2026.
Compal reported a second-quarter net profit after tax of NT$482 million, down 78% from the previous quarter and 83% year-on-year, largely due to NT$1.4 billion in foreign exchange losses linked to Taiwan dollar appreciation. Analysts remain optimistic that with exchange rates stabilizing and new orders starting to flow, Compal’s operations will return to a growth trajectory in the second half.
