TDK — leaderboard ()

Compal opens Daxi AI server plant, targets 2x output by 2026

Compal Electronics has opened its Daxi AI Server Manufacturing Center in Taiwan, bringing new manufacturing capacity online for AI server systems and rack-level solutions. The company is tying the site to growing demand for AI, HPC, and large-scale data centers, where build volume, integration capability, and supply chain execution can become limiting factors as quickly as silicon.

Compal previously disclosed a total investment of NT$4.03 billion for the Daxi facility, covering property acquisition, facility upgrades, and deployment of manufacturing equipment. The Daxi site occupies about 7,654 m² of land and has a total floor area of about 21,706 m².

Compal says the factory will focus on production of AI server systems (L10) and rack-level solutions (L11), and it expects the site to begin contributing revenue progressively starting in 4Q 2026. With Daxi added, Compal expects its AI server system production capacity to double, and it says the site adds rack manufacturing capabilities aimed at growing AI server and data center infrastructure demand.

On the technology side, Compal says the Daxi AI Server Manufacturing Center will incorporate its proprietary liquid-cooling technology and focus on rack-level system integration, advanced cooling technologies, and high-density AI infrastructure manufacturing. Practically, that combination maps to where AI deployments tend to get hard fast: rack integration and thermal management, especially as power draw and compute density climb and operators push for stable operation without wasting energy budget on cooling overhead.

The company also describes Daxi as part of a broader manufacturing network spanning Taiwan, Vietnam, and the United States, with the goal of giving customers regional manufacturing flexibility and improved global delivery capability. Compal Chairman Ray Chen said, “In the AI server market, our customer base has expanded from traditional PC ODM customers into the NeoCloud,” adding that the company plans to “further expand our presence among Hyperscaler and Enterprise customers.” He also pointed to “the planned full-scale ramp-up of our Texas facility in the United States next year.”

Source: Compal Electronics

Get Data Center Engineering News In Your Inbox:

By subscribing, you agree to our Privacy Policy and Terms of Use. You can unsubscribe at any time.

Sponsored: Infineon at OCP 2026: Exclusive Content Hub. Executive interviews, technical documents, reference designs, and live expert panel. Unlock the hub.
TDK — tower ()

Popular Posts:

Frontale_(sh)
Mitsubishi Electric launches 1.75 MW magnetic-bearing air-cooled chiller for AI data centers
Dr. Fanny Björk, Infineon — Microseconds, not milliseconds
Grid to core: the case for shifting to DC-grids
tranetechnologies
Trane demos 800 VDC chiller for AI data centers, 3.5 MW cooling capacity
npc50506-6-4t-optical-engine-ch
NewPhotonics adds integrated-laser 6.4T near-package optics engine chipset
Screenshot 2026-09-30 at 10.33
Liquid leak detection flex assembly targets AI and HPC liquid cooling

Share Your Data Center Engineering News

Do you have a new product announcement, webinar, whitepaper, or article topic? 

Chroma — tower

Get Data Center Engineering News In Your Inbox:

By subscribing, you agree to our Privacy Policy and Terms of Use. You can unsubscribe at any time.

Chroma — leaderboard