Taipei: Wistron Corp., a prominent contract electronics manufacturer based in Taiwan, has announced a significant investment of US$45 million into its subsidiary in California, WisLab EMS Corp. This move is aimed at enhancing production capabilities to cater to the increasing global demand for AI servers.

According to Focus Taiwan, Wistron’s board approved the capital injection to upgrade the existing factory of WisLab EMS Corp., which will support the parent company’s AI server business. Originally, the California facility was designed for the production of healthcare and industrial control products. However, with the new investment, the facility will now focus on the development, testing, and production of advanced AI servers.

Media reports indicate that Wistron had previously established a research and development center in California and started a pilot production run for AI servers last year. This recent decision to inject additional funds signifies a commitment to expanding its California subsidiary’s
capabilities.

In addition to the California operations, Wistron has constructed a plant in Texas, where full-scale production of AI servers is set to commence in the first quarter of this year. The company has strategically diversified its production across the Americas, Europe, and Southeast Asia, with Mexico being a significant site.

Wistron President and CEO Jeff Lin has also addressed potential challenges arising from the Trump administration’s 30 percent tariff on Mexican-made goods, effective August 1. Lin stated that the company has contingency plans to mitigate the impact of these tariffs once the specifics are released.

Furthermore, in Taiwan, Wistron has initiated the development of a research and development center in Taipei’s Neihu District. This center is strategically located near the construction site of the company’s new headquarters and the future headquarters of its cloud services subsidiary, Wiwynn Corp.