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.
Sweeping policy changes under US Secretary of Health and Human Services Robert F. Kennedy Jr are having a chilling effect on vaccine makers as anti-vaccine rhetoric has turned into concrete changes in inoculation schedules and recommendations, investors and executives said. The administration of US President Donald Trump has in the past year upended vaccine recommendations, with the country last month ending its longstanding guidance that all children receive inoculations against flu, hepatitis A and other diseases. The unprecedented changes have led to diminished vaccine usage, hurt the investment case for some biotechs, and created a drag that would likely dent revenues and
Macronix International Co (旺宏), the world’s biggest NOR flash memory supplier, yesterday said it would spend NT$22 billion (US$699.1 million) on capacity expansion this year to increase its production of mid-to-low-density memory chips as the world’s major memorychip suppliers are phasing out the market. The company said its planned capital expenditures are about 11 times higher than the NT$1.8 billion it spent on new facilities and equipment last year. A majority of this year’s outlay would be allocated to step up capacity of multi-level cell (MLC) NAND flash memory chips, which are used in embedded multimedia cards (eMMC), a managed
CULPRITS: Factors that affected the slip included falling global crude oil prices, wait-and-see consumer attitudes due to US tariffs and a different Lunar New Year holiday schedule Taiwan’s retail sales ended a nine-year growth streak last year, slipping 0.2 percent from a year earlier as uncertainty over US tariff policies affected demand for durable goods, data released on Friday by the Ministry of Economic Affairs showed. Last year’s retail sales totaled NT$4.84 trillion (US$153.27 billion), down about NT$9.5 billion, or 0.2 percent, from 2024. Despite the decline, the figure was still the second-highest annual sales total on record. Ministry statistics department deputy head Chen Yu-fang (陳玉芳) said sales of cars, motorcycles and related products, which accounted for 17.4 percent of total retail rales last year, fell NT$68.1 billion, or
In the wake of strong global demand for AI applications, Taiwan’s export-oriented economy accelerated with the composite index of economic indicators flashing the first “red” light in December for one year, indicating the economy is in booming mode, the National Development Council (NDC) said yesterday. Moreover, the index of leading indicators, which gauges the potential state of the economy over the next six months, also moved higher in December amid growing optimism over the outlook, the NDC said. In December, the index of economic indicators rose one point from a month earlier to 38, at the lower end of the “red” light.