$530M: Three Electronics Giants Expand U.S. Investments

As U.S. tariffs under the Trump-era trade policies and global trade tensions continue to shape supply chains, more semiconductor and IT manufacturers are establishing production in the United States.

On August 12, Compal Electronics announced a $300 million investment in the U.S. alongside its second-quarter earnings report to address the rising demand for servers. Quanta Computer also revealed a $170 million investment in its Nashville, Tennessee subsidiary to expand AI server production. Wistron authorized up to $62.5 million for facility upgrades at its Dallas Eagle plant. Combined, these three companies are investing over $530 million in U.S. operations.

Compal's board approved the $300 million U.S. investment plan, including $225 million for Compal Americas (US) Inc. and $75 million to establish a new U.S. subsidiary. The goal is to mitigate global trade and tariff risks, support the expansion of U.S. server operations, and strengthen Compal's North American presence. The funds will primarily go toward server production, including assembly and testing (L10) and complete server systems (L11) across U.S. and Mexican facilities, targeting mass production by the first half of 2026. A smaller portion will support automotive electronics and notebook production.

Earlier this year, Compal also increased its Indiana-based automotive electronics operations with a $10 million investment.

Other major electronics manufacturers, including Foxconn, Quanta, Wistron (and its subsidiary Wiwynn), and Inventec, have similarly announced U.S. investment plans to expand AI server production.

For instance, Foxconn revealed in late March a $142 million investment through its U.S. subsidiary Hon Hai Technology to acquire land and facilities in Houston, Texas. Chairman Liu Yangwei indicated that production collaborations across multiple U.S. states are expected to grow, with capital expenditure increasing by over 20% this year.

Wistron announced in April the establishment of a U.S. subsidiary, WIUS, investing up to $50 million for land and facilities—its first large-scale AI production base in the U.S. The company later expanded its U.S. investment plans to $720 million, highlighting the scale of its production ambitions. Wistron's subsidiary Wiwynn also announced a $300 million investment to set up a Texas facility. On August 12, Wistron's board approved up to $62.5 million for improvements at its Dallas Eagle plant to support after-sales service operations.

Quanta has been steadily expanding in the U.S. over the past two years, with production on both the East and West coasts. Recent investments include $29.16 million and $11.15 million in California facilities. On August 12, Quanta announced a $170 million increase in its Nashville subsidiary, QMN (Quanta Manufacturing Nashville LLC), to further expand AI server capacity. Quanta highlighted that U.S. and Mexican production will remain key, with Mexican facilities extending from automotive products to AI server lines, aligning with USMCA standards and targeting full production this year.

Inventec also revealed plans in late April to invest up to $85 million in a U.S. server manufacturing facility in Texas.