Compal Electronics Inc. plans to invest $30 million to boost automotive electronics production at its facilities in Indiana and Poland, accelerating the Taiwanese manufacturer’s pivot away from its China-centric operations.
The company will inject $10 million into its Indiana subsidiary and $20 million into its Polish unit, marking a significant expansion of its European footprint. The move comes as Compal, which counts Mercedes-Benz and BMW among its automotive clients, repositions its manufacturing base amid rising geopolitical tensions.
The Polish facility, announced in July 2023, is scheduled to begin operations in May, focusing on infotainment systems and electronic control units. The rapid follow-up investment suggests strong demand from European automakers, according to company statements.
Compal’s Chairman Ray Chen indicated that the company is diversifying its manufacturing presence across nine countries to mitigate geopolitical and tariff risks. The strategy includes potential plans for a new server manufacturing site in Texas, driven by growing artificial intelligence infrastructure demands in the U.S. market.
The Indiana plant, acquired from Compal affiliate Cal-Comp Electronics in 2021, represents part of the company’s broader strategy to locate production closer to end markets. President Bernardo Ko suggested that the company is particularly focused on expanding its North American presence in response to potential new tariff policies under the Trump administration.
Compal’s latest investments, totaling NT$982 million, reflect an industry-wide shift among Taiwanese manufacturers to reduce dependency on any single market while strengthening their position in key growth sectors like automotive electronics.
