Taipei: Compal Electronics, Inc., a leading Taiwanese contract notebook computer manufacturer, is contemplating investment opportunities in the United States, with Texas emerging as a top contender. Compal President Anthony Peter Bonadero revealed the company's considerations on the sidelines of its year-end dinner, following the re-election of Donald Trump, who has pledged to increase tariffs.

According to Focus Taiwan, Bonadero emphasized that Texas stands out due to its unique independent electricity grid network. This consideration is part of Compal's broader strategy to assess potential investment locations in the southern United States. Compal is not alone in this regard, as other Taiwanese tech firms are also eyeing Texas for future investments.

Jack Tsai, president of Inventec Corp., another Taiwanese AI server manufacturer, echoed similar sentiments over the weekend during the company's 50th anniversary celebration. Tsai highlighted Texas's reliable power supply and proximity to Mexico as attractive factors for their U.S. investment plans.

The increasing global demand for AI servers, primarily driven by four mega data centers in the U.S., is influencing Compal's long-term investment strategy in North America. Bonadero mentioned the company's plans to expand its talent pool and production capabilities in response to growing demand in the AI server market.

Compal has also partnered with U.S.-based AI chip designer Nvidia Corp., joining its "Nvidia MGX" server platform to enhance its AI server offerings. Bonadero projected that by 2025, AI servers could contribute 15-20 percent of Compal's total server sales, a significant increase from the 1-3 percent expected in 2024.

While large language models (LLM) are a crucial area for AI server development, Compal is exploring additional growth avenues. Bonadero noted that the demand for AI PCs is anticipated to rise in 2025, driven by the end of Windows 10 support and the subsequent replacement of Chromebook computers. This demand is expected to surge further in 2026, potentially accounting for over 40 percent of total PC sales.

Compal Chairman Ray Chen stated that the company has established a robust foundation in PC and smart device production. Looking ahead, Compal aims to expand its presence in AI servers, automotive electronics, and 5G products, identifying these sectors as key future growth drivers.