Compal expects modest PC market growth in 2025, supported by the Windows 10 end-of-life transition and increasing AI PC adoption. The company is also making strides in the AI server market, with Chairman Ray Chen expressing confidence in becoming a supplier for Nvidia-powered AI servers.
Strategic server developments
Chen, who assumed the chairmanship in June, initially expressed disappointment at being overlooked by Nvidia but remained determined to enhance Compal's server capabilities. The company's recent inclusion in Nvidia's MGX server development partnership marks significant progress toward this goal. Following the groundbreaking of Compal's medical facility in Ruifang, New Taipei City, Chen revealed positive developments in their server business, including ongoing product development collaborations with Nvidia. He suggested Compal's potential participation in the GTC 2025 event, which will showcase Nvidia-powered AI servers predominantly manufactured by Taiwanese companies.
Global manufacturing shift
In response to post-election changes in US trade policies, Chen addressed the transition from globalization to increased isolationism. Compal plans to reduce its China-based manufacturing from 70% in 2024 to 50% in 2025, diversifying production across Vietnam, Thailand, the US, Mexico, Poland, and Brazil. While China remains Compal's main manufacturing hub, the company is accelerating diversification efforts due to potential high tariffs on Chinese imports under the Trump administration. Chen declined to comment on speculation regarding Compal's potential bid for ZT's US factory.
PC market outlook The company forecasts growth in PC demand, driven by system upgrades necessitated by Windows transitions and increasing AI PC adoption. Chen projects AI PCs will constitute 20-30% of global notebook shipments. The overall PC market is expected to see modest growth, with Compal's PC division anticipated to perform similarly.
