In a strategic move to strengthen its global presence, Wistron's board of directors approved several overseas investment projects on December 20, 2024, including a major renovation of its Texas facility in the US, the construction of a new factory in Vietnam, and additional capital investment in India.
Emphasizing corporate resilience in today's dynamic market, Chairman Simon Lin highlighted Wistron's readiness to adapt to various US market conditions, including potential tariff changes, regional regulations, and production requirements.
The board's latest resolutions reflect the company's strategic positioning of critical operating bases in alignment with broader industry trends, as developing manufacturing operations in the US becomes increasingly crucial alongside expansion in Southeast Asia.
US expansion targets AI server production
In Texas, Wistron's wholly-owned subsidiary SMS InfoComm will invest up to US$25 million in facility improvements to support its growing after-sales service business. The upgraded facility is expected to become one of the company's future production sites for AI servers.
Vietnam operations broaden despite tariff concerns
To diversify its manufacturing capabilities, Wistron plans to produce server products, monitors, and PCs in Vietnam. The board has authorized Wistron InfoComm (Vietnam), another wholly-owned subsidiary, to acquire 37.1 hectares of industrial land from Kim Bang Industrial Zone Company for up to VND964.6 billion (US$37.1 million).
Building upon its existing Vietnamese operations, Wistron is securing additional property adjacent to its current facility. Despite recent supply chain concerns over potential US tariffs on Vietnam, the company's continued investment demonstrates its confidence in the Vietnamese market.
To support its expansion, Wistron will establish a wholly-owned subsidiary, Wistron Property (Vietnam), with a registered capital of US$16.5 million dedicated to employee dormitory construction.
Strategic presence maintained in India
Following the sale of its Indian factory to Tata Group, Wistron maintains its commitment to the Indian market through an after-sales service production line. To finance local facility construction, the board has approved SMS InfoComm (Singapore)'s US$20 million investment in ICT Service Management Solutions (India) Private Limited, both wholly-owned subsidiaries of Wistron.
