TAIPEI (TVBS News) — Compal Electronics Inc. (仁寶) expects its server business to double from 5% to 10% of total revenue by the end of 2026, President Anthony Peter Bonadero said Thursday (June 4) at Computex Taipei (台北國際電腦展). The Taiwan-based manufacturer showcased its collaboration with Nvidia (輝達) on next-generation Physical AI as it seeks to expand beyond its core PC business.
Compal has invested more than US$500 million (approximately NT$15.76 billion) in its Texas manufacturing facility to support the expansion, Bonadero said. The company plans to open a new facility in Daxi (大溪), Taiwan, while leveraging motherboard production capacity in Vietnam. Demand for AI infrastructure is expected to continue growing over the next several years, he added.
The expansion reflects broader industry efforts to meet surging demand for AI computing infrastructure. Bonadero said the company's strategy centers on three areas: AI server infrastructure, connectivity technologies and medical technology applications. He described server infrastructure as a key growth driver, citing rising average selling prices for AI hardware and strong market demand.
In connectivity, Compal plans to expand through 5G technologies, extending coverage from satellite networks to edge computing. Bonadero said these technologies will help build the communications infrastructure needed to support Physical AI applications, which integrate artificial intelligence with physical systems and robotics.
The rapid growth of AI computing has increased demand for power, making energy availability a key factor in Compal's manufacturing strategy. Bonadero said the Texas facility was selected in part because of the state's independent power grid and leadership in wind energy.
"Due to the independent power grid of the Texas plant, which stands apart from the other 49 states in the U.S., and its leadership in wind power, electricity was a key criterion for selection, and we are satisfied with the conditions there," Bonadero said.
Computex Taipei, Asia's largest technology trade show, runs through Friday (June 5). Compal Electronics, headquartered in Taipei, is one of the world's largest original design manufacturers of notebook computers and electronic devices. ◼ (At time of reporting, US$1 equals approximately NT$31.52)