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Inventec to invest up to US$85 million in Texas facility; joins wave of US expansions for Taiwanese ODMs

Aaron Lee, Taipei; Elaine Chen, DIGITIMES Asia 0

Credit: DIGITIMES

Taiwanese electronics maker Inventec announced on April 28 that its board of directors has approved an investment plan of up to US$85 million to establish a manufacturing facility in Texas, marking the latest move by a major original design manufacturer (ODM) to expand US operations. The investment follows similar commitments by fellow Taiwanese ODM giants Foxconn, Wistron, and Wiwynn.

The company stated that its US subsidiary will lead the project, aligning with Inventec's broader globalization strategy. The move is aimed at strengthening client relationships and mitigating risks associated with US trade and tariff policies. The investment, capped at US$85 million, will be used to identify and develop a suitable site in Texas.

Funding for the project will come from a mix of internal operating capital and bank loans, according to the company's filing.

Inventec previously indicated that Texas was the preferred location for a new US-based server assembly plant, citing its proximity to the company's facility in Mexico, stable and ample electricity supply, and overall suitability for AI server assembly, which requires high power for testing.

Sources say Inventec has been surveying potential sites in Texas since early this year, and the decision to move forward has now been finalized.

The investment adds to a growing presence of Taiwanese server ODMs in the US: Quanta has facilities in California and Tennessee, Foxconn in Wisconsin and Texas, Wistron and WiWynn both in California and Texas, MiTAC's cloud computing arm in California, and Pegatron also in California. Compal remains the only major Taiwanese server ODM that has not yet announced US manufacturing plans.

Industry sources suggest Compal is considering bidding for ZT Systems' US operations, a move that could give it access to ZT's production facilities and experienced workforce, while potentially deepening ties with AMD. Compal has not commented on the rumors but currently operates an automotive equipment plant in Indiana.

Article edited by Jack Wu