Compal Electronics Invests $300 Million in US Operations to Expand Server Business

Compal Electronics plans to invest $300 million in the US to strengthen its operations and competitiveness in North America. The investment includes a $225 million cash injection into its US unit, Compal Americas, and $75 million to set up new subsidiaries for its server business. The move aims to mitigate risks from global trade policies and expand its server, notebook, and automotive electronics operations in the region.

Taipei, Aug 12 - Taiwan-based electronics manufacturer Compal Electronics (2324.TW) has announced a significant investment plan to bolster its operations and competitiveness in North America. The company's board has approved a $300 million investment strategy aimed at strengthening its presence in the U.S. market, with a particular focus on expanding its server business.

The investment plan includes a $225 million cash injection into its wholly owned U.S. subsidiary, Compal Americas, and an additional $75 million to establish new subsidiaries that will serve as operational bases for the server business in the U.S. market. According to Compal, these investments are designed to mitigate risks associated with global trade and tariff policies while also expanding its server, notebook, and automotive electronics operations in the region.

The move comes at a time when global trade tensions and policy changes are posing significant challenges to electronics manufacturers. By strengthening its U.S. operations, Compal aims to insulate itself from these risks and capitalize on the growing demand for electronic products in North America. The company expects the investments to enhance its competitive edge and drive long-term growth.

Reporting by Wen-Yee Lee; Editing by Christian Schmollinger

References:
[1] https://www.reuters.com/world/asia-pacific/taiwans-compal-electronics-boosts-us-operations-with-300-million-investment-2025-08-12/