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Taiwanese ODMs ramp up AI server production in Texas following U.S.-Taiwan tax agreements
Saturday, January 17, 2026 at 05:45 AM
Major Taiwanese ODM manufacturers including Wistron, Inventec, Foxconn, and Quanta are expanding AI server production lines in the United States, particularly in Texas, to mitigate tariff uncertainties and meet localized demand. Wistron, Inventec, and Foxconn expect to ramp up volume production in Texas starting in Q2 2024. Compal has also secured facilities in Taylor and Georgetown, Texas, for server production and repair, while Quanta is projected to increase CapEx to over 20 billion TWD in 2025-2026 for U.S. and Thai expansions.
Context
Major Taiwanese ODMs, including Wistron, Inventec, and Foxconn, are aggressively ramping up AI server production in Texas following a landmark U.S.-Taiwan tax agreement. This deal mitigates previous 15% tariff pressures, allowing new production lines to scale through Q1 2024. With mass production slated for Q2 2024, these firms are securing a strategic advantage in capturing surging North American demand for high-performance AI infrastructure while reducing reliance on Greater China.
Strategic shifts are backed by massive capital, with Quanta Computer forecasting expenditures to exceed $20 billion TWD by 2026. Meanwhile, Pegatron and Compal are establishing specialized hubs for assembly and repair to provide rapid customer response. This move toward "regionalized production" across Foxconn’s 233 global locations reflects an industry-wide effort to insulate the AI supply chain from geopolitical volatility and rising component costs, ensuring long-term resilience for Western clients.
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