Wistron Corp (緯創) yesterday said customers were not adjusting front-loading schedules or requesting supply source shifts, but the manufacturer has prepared contingency plans to relocate production following US President Donald Trump’s announcement on Saturday of a levy of up to 30 percent on Mexican goods.
The contract server and notebook computer manufacturer has not received new instructions from customers over the new tariffs on Mexican goods, which might contravene the US-Mexico-Canada Agreement, Wistron president Jeff Lin (林建勳) said on the sidelines of an event in Taipei.
While Washington has announced new tariffs for certain countries, many details remain unclear, Lin said, adding that the company is awaiting further information, but has prepared multiple contingencies that could be activated depending on the final tariff rates.
Photo: Fang Wei-chieh, Taipei Times
Trump also announced a 30 percent tariff on goods imported from the EU.
Customers have simulated several scenarios and developed contingency plans with Wistron since Trump took office in January, Lin said.
Wistron’s comprehensive global footprint, with production sites in Taiwan, Southeast Asia, the US and Europe, would help mitigate any potential impact, he said.
The company is constructing a new factory in Dallas, Texas, which is set to begin mass production in the first quarter of next year, he said.
The plant would primarily produce high-performance computing products, with the first order already secured and additional orders being discussed, Wistron said in May.
Regarding what US tariff rate on Taiwanese goods would exceed expectations, Lin said he did not have a specific figure in mind, but hoped the rate would be kept as low as possible.
The outlook for artificial intelligence (AI) servers in the second half remains positive, as demand continues to outpace supply, and customers are still placing orders despite potential tariff effects, he said.
“With the advancement of AI server technologies and the rollout of more powerful computing servers, I believe clients remain willing to make purchases,” he added.
However, tariffs could push up retail prices of notebook and desktop computers to weigh on replacement demand, Lin said.
Wistron yesterday held a groundbreaking ceremony for the construction of a new research-and-development center in Taipei’s Neihu District (內湖). The center is about 1km from the company’s new Neihu headquarters, with construction slated for completion in 2028 at a planned investment of up to NT$2.7 billion (US$92.2 million).
The center is to become an AI tech cluster with eight above-ground floors, four basement levels and a total floor area of 31,157m2, and is expected to create about 1,500 engineering jobs upon completion, Lin said.
The company last year signed a lease with the Taipei City Government to secure four plots of land and superficies for 60 years for the center’s construction.
Wistron’s cloud computing subsidiary, Wiwynn Corp (緯穎), is also constructing a new facility nearby, he said.
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