Inventec Corp (英業達) has approved an investment plan of up to US$85 million to purchase commercial property and establish a manufacturing base in Texas, as the company seeks to address logistics and shipping needs for its artificial intelligence (AI) server business.
The company’s board of directors approved the investment to support the global strategic expansion of its US subsidiary, stabilize cooperation with existing clients, fulfil customer shipping requirements, explore new markets and mitigate the impact of US President Donald Trump’s tariff policies, Inventec said in a regulatory filing on Monday.
Inventec is searching for a suitable production site in Texas, with the process expected to be completed between next month and December, the company said, adding that the project would be financed through a combination of operational funds and bank loans.
Photo: Fang Wei-chieh, Taipei Times
“The manufacturing base would primarily serve our server product lines,” an Inventec official told the Taipei Times by telephone yesterday. “The decision was made by putting ourselves in our clients’ shoes, as they are the ones bearing the tariff costs. We are trying to meet their needs.”
The planned US$85 million investment does not cover spending on machinery and equipment, with details such as the production timeline still under development, said the official, who requested anonymity.
Inventec president Jack Tsai (蔡枝安) in January told reporters that the company had been seeking locations in the US that could provide a stable electricity supply for its planned manufacturing base, with Texas among the potential sites under consideration.
While the company has already established factories in Mexico to produce servers, notebook computers and automotive electronics, it has been considering expanding into the US, as server products are typically too large and costly to ship.
In addition to Inventec, Wistron Corp (緯創) subsidiary Wiwynn Corp (緯穎) has also accelerated its investment in the US this year in response to Trump’s tariffs.
Wiwynn’s board of directors in February approved a US$300 million capital injection into its US unit to expand operations and establish a new factory in Texas.
Responding to regional production demands, Wiwynn has shifted from an asset-light model — relying primarily on Wistron’s production capacity — to building its own manufacturing facilities over the past few years, with factories now operating in Mexico, the Czech Republic, Taiwan and Malaysia.
“The company will continue to expand and adjust its production capability according to the market need,” Wiwynn chairwoman Emily Hong (洪麗甯) said in the company’s annual shareholders’ report released on Monday.
The company has relocated its Chinese factories elsewhere over the past few years, the report said.
Its assembly plants in Malaysia achieved mass production in 2023, while its motherboard production lines began mass production in the fourth quarter of last year. Wiwynn’s third plant in Mexico also started mass-producing server products in the first half of last year, it added.
With the added capacity and ongoing expansion at its plant in the Southern Taiwan Science Park (南部科學園區), the company’s in-house motherboard production capacity has increased five-fold, while its final-assembly capacity has more than tripled, the report said.
Wiwynn remains optimistic about long-term growth in data center demand, and plans to continue investing in research and development related to AI, computing and heat dissipation technologies, Hong said.
The company also plans to deepen cooperation with technology partners to develop products across a range of computing platforms, including central processing units, graphics processing units and application-specific integrated circuits, while enhancing its advanced cooling and final-assembly capabilities, she said.
To adapt to shifting global trade conditions, Wiwynn would continue implementing automation and smart manufacturing technologies, strengthen client communications and leverage its global production network to ensure stable and flexible operations, she added.
Real estate agent and property developer JSL Construction & Development Co (愛山林) led the average compensation rankings among companies listed on the Taiwan Stock Exchange (TWSE) last year, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) finished 14th. JSL Construction paid its employees total average compensation of NT$4.78 million (US$159,701), down 13.5 percent from a year earlier, but still ahead of the most profitable listed tech giants, including TSMC, TWSE data showed. Last year, the average compensation (which includes salary, overtime, bonuses and allowances) paid by TSMC rose 21.6 percent to reach about NT$3.33 million, lifting its ranking by 10 notches
Popular vape brands such as Geek Bar might get more expensive in the US — if you can find them at all. Shipments of vapes from China to the US ground to a near halt last month from a year ago, official data showed, hit by US President Donald Trump’s tariffs and a crackdown on unauthorized e-cigarettes in the world’s biggest market for smoking alternatives. That includes Geek Bar, a brand of flavored vapes that is not authorized to sell in the US, but which had been widely available due to porous import controls. One retailer, who asked not to be named, because
SEASONAL WEAKNESS: The combined revenue of the top 10 foundries fell 5.4%, but rush orders and China’s subsidies partially offset slowing demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) further solidified its dominance in the global wafer foundry business in the first quarter of this year, remaining far ahead of its closest rival, Samsung Electronics Co, TrendForce Corp (集邦科技) said yesterday. TSMC posted US$25.52 billion in sales in the January-to-March period, down 5 percent from the previous quarter, but its market share rose from 67.1 percent the previous quarter to 67.6 percent, TrendForce said in a report. While smartphone-related wafer shipments declined in the first quarter due to seasonal factors, solid demand for artificial intelligence (AI) and high-performance computing (HPC) devices and urgent TV-related orders
MINERAL DIPLOMACY: The Chinese commerce ministry said it approved applications for the export of rare earths in a move that could help ease US-China trade tensions Chinese Vice Premier He Lifeng (何立峰) is today to meet a US delegation for talks in the UK, Beijing announced on Saturday amid a fragile truce in the trade dispute between the two powers. He is to visit the UK from yesterday to Friday at the invitation of the British government, the Chinese Ministry of Foreign Affairs said in a statement. He and US representatives are to cochair the first meeting of the US-China economic and trade consultation mechanism, it said. US President Donald Trump on Friday announced that a new round of trade talks with China would start in London beginning today,