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Delta Electronics to reach record CapEx in 2026 for AI server power supply capacity
Monday, February 23, 2026 at 06:14 AM
Delta Electronics plans to set a new record for capital expenditure in 2026 to expand production of AI server power supplies. The company is evaluating new manufacturing facilities in Mexico to address capacity constraints at its existing Thailand and U.S. sites. Revenue contribution from 800VDC power systems designed for Nvidia architectures is expected to begin this year, though management anticipates capacity will remain tight through 2026.
Context
Delta Electronics is accelerating its global expansion, with capital expenditures projected to surpass last year’s record of 46.1 billion TWD to address critical capacity shortages in the AI data center market. Chairman Cheng Ping anticipates supply constraints will persist for at least the next two years, driving the company to proactively plan production capacity through 2029. Major investments are focused on scaling operations in Thailand, the United States, and Mexico to meet the bespoke technical and volume requirements of the world’s leading cloud service providers.
This aggressive spending follows a stellar fiscal performance where net profit soared 70.6% to a record 60.1 billion TWD, yielding an EPS of 23.14 TWD. The company’s growth is anchored by its AI server power units and liquid cooling solutions, which now represent over 20% and 10% of total sales, respectively. Investors are closely watching the commercialization of 800VDC power systems, which are slated to generate revenue within the current year and reach significant volume by 2027, solidifying the company's position as a primary beneficiary of the global AI infrastructure build-out.
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