Delta Electronics Inc. is raising $525 million to accelerate its global manufacturing expansion, as the Taiwanese power supply maker reduces its reliance on China amid shifting supply chains.
The company plans to significantly boost production capacity in Thailand and India while expanding into the U.S. and Eastern Europe to meet regional manufacturing demands, according to Chairman Ping Cheng. The expansion targets growing markets for AI servers, data centers and electric vehicles.
Delta currently derives about 60% of its production from China and aims to maintain that ratio between 50-60% long-term, with Chongqing set to become its next major manufacturing hub. The company’s capital expenditure has exceeded NT$20 billion ($632 million) annually for the past four years, reaching NT$26.3 billion through the third quarter of 2023.
The power supply maker has been investing heavily in U.S. expansion, capitalizing on increased infrastructure spending and strong demand for data centers, EV charging stations, and energy infrastructure. Delta has poured billions of NT dollars into expanding facilities in Texas and Detroit while boosting R&D capabilities.
For 2024, analysts expect Delta’s capital spending to surpass NT$36.8 billion, marking its highest-ever annual investment as the company repositions its global manufacturing footprint.
