Taiwanese electronics manufacturer Compal completed the initial phase of its NT$500 million ($15.4 million) automotive electronics facility in Czeladź, Poland, as the contract maker seeks to reduce its reliance on China-based production.
The plant, which broke ground in July 2024, represents Compal’s first European manufacturing venture as the company repositions itself closer to automotive clients including Mercedes-Benz and BMW. The facility will produce advanced driver assistance systems and electronic control units for European automakers.
The 7,650-square-meter facility will initially focus on manufacturing onboard computers for Stellantis Group vehicles, with plans to eventually employ 328 workers when fully operational between 2028 and 2029.
Compal’s expansion into Europe comes as Taiwanese manufacturers face mounting pressure from geopolitical tensions and potential tariff changes. The company recently announced an additional $30 million investment across its US and Polish operations, signaling accelerated diversification efforts.
However, the company acknowledges uncertainties ahead. Compal indicated that future expansion phases will depend on international tariff policy developments, reflecting broader industry concerns about trade stability.
Analysts project double-digit growth in automotive electronics sales for 2024, though execution risks remain as Compal navigates the complex automotive supply chain while establishing its European operational capabilities.