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
