Taiwanese electronics manufacturer Compal Electronics Inc. secured its first artificial intelligence server order from Nvidia Corp., marking a turnaround in its previously stalled AI hardware ambitions.
Chairman Ray Chen said the company is developing multiple products with Nvidia, suggesting a deeper partnership ahead of next year’s GTC conference. The deal comes after Compal was notably absent from Nvidia’s supplier roster at this year’s event.
The contract manufacturer expects global PC shipments to climb in 2025, driven by Microsoft’s planned end of Windows 10 support and rising demand for AI-capable computers. AI-enabled laptops could represent 20% to 30% of worldwide notebook shipments next year.
Compal posted a 5.01% gross margin in the third quarter, its highest in 13 years. The company is also exploring potential opportunities arising from rival Supermicro’s regulatory troubles, though Chen declined to comment on speculation about acquiring parts of ZT Systems’ manufacturing operations.
Separately, Compal is investing NT$1 billion ($31.2 million) in a healthcare facility in Ruifang, Taiwan, set to open in 2028 as part of its push into smart medical services.
