Wistron Corp (緯創), a contract manufacturer of servers and notebook computers, yesterday said that its new US plant would begin producing high-performance computing (HPC) devices for customers by the end of next year, as part of efforts to mitigate the impact of US tariffs.
The company has secured its first order for its plant in Dallas, Texas, and is in discussions with other potential customers, Wistron president Jeff Lin (林建勳) told reporters following the annual shareholders’ meeting in Taipei.
Wistron has been operating a plant in Dallas for about a decade, and the new capacity expansion is a continuation of its long-term strategy, not a sudden move, Lin said.
Photo: CNA
The new production line in Dallas would focus on HPC products and feature a high degree of automation, Lin said, adding that the company plans to operate a maintenance service facility at the site.
Asked whether Wistron plans to build new factories in the Middle East, company chairman Simon Lin (林憲銘) said there are no such plans. Instead, Wistron would assist clients with shipping products to the region.
Regarding artificial intelligence (AI) server demand, Simon Lin said Wistron anticipates continued growth, driven by increasing corporate adoption, despite geopolitical tensions and uncertainties surrounding US tariff policies.
Asked whether US President Donald Trump’s tariff policy would affect its AI server orders, Jeff Lin said Wistron is still unable to fully meet customers’ demand, as customers are still increasing computing power to meet the rising demand for AI applications.
“I believe the demand is still there despite the impact of tariffs,” he said.
However, the company is cautious about the potential impact of US tariffs on notebook computers.
The retail prices of notebook computers could go up by 10 percent to 20 percent in the worst-case scenario, he added.
Wistron is seriously considering shifting some notebook computer manufacturing to Mexico, eyeing the preferential tariffs under the US-Mexico-Canada Agreement, Jeff Lin said.
However, no final decision has been made, as production costs in Mexico remain higher than in Asia, he added.
Wistron expects to ship more notebook computers this year compared with last year, attributable to replacement demand due to the end of Microsoft Corp’s Windows 10 operating system and the post-COVID-19 upgrade cycle, he said.
In the first quarter, Wistron shipped 4.9 million notebooks, a 7.55 percent decline from the previous quarter, but a 6.52 percent increase year-on-year, the company said.
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