Wistron Corp is betting big on artificial intelligence with plans to invest NT$12.8 billion ($399 million) to expand its AI capabilities in Taiwan following a year of record financial performance.
The Taiwanese electronics manufacturer approved a cash dividend of NT$3.8 per share at its board meeting on February 24, representing a payout ratio of over 60% based on 2024 earnings of NT$6.11 per share. This offers investors a yield of 3.3% at the current share price of NT$115.
To capitalize on surging demand for AI servers, Wistron will spend NT$12.8 billion to upgrade facilities at its Zhubei International AI Smart Park. The company has also secured additional factory space nearby from Lian Fa Textile, leasing over 10,000 ping (approximately 33,000 square meters) under a ten-year agreement extending to 2035.
The tech manufacturer is simultaneously boosting investments across multiple locations. The board approved NT$2.7 billion for constructing a research and development building in Taipei’s Neihu district and increased its commitment to a university collaboration project with National Yang Ming Chiao Tung University from NT$1 billion to NT$1.25 billion.
Overseas expansion efforts include nearly doubling the capital of its Vietnam subsidiary from $16.5 million to $30 million, with plans to invest $153.4 million for dormitories, warehouses, and parking facilities there. The company also increased its India factory project budget from $40.4 million to $50 million.
The board further authorized issuing up to 250 million new shares through either domestic cash offering or global depositary receipts, while approving 36 million restricted stock awards to retain key talent.
Wistron will hold its annual shareholder meeting on May 16 to vote on these proposals.
