Wistron to expand AI server output via California unit

Taipei, July 17 (CNA) Wistron Corp., a leading contract electronics maker in Taiwan, will inject US$45 million into its California subsidiary to expand production and meet growing global demand for AI servers.

In a statement, Wistron said its board approved a plan on Wednesday to raise the capital of its wholly owned California subsidiary, WisLab EMS Corp., by up to US$45 million, with the aim of upgrading the unit's existing factory and supporting the parent company's AI server business.

Wistron told CNA that the California factory was originally designed to produce healthcare and industrial control products, but following the capital injection to expand capacity, it will begin advanced AI server development, testing and production.

According to media reports, Wistron established a research and development center in California and began a pilot run for AI server production last year, prior to the decision to inject additional funds into the California subsidiary for expansion.

In addition to the California facility, Wistron has built a plant in Texas, where mass production of AI servers is scheduled to begin in the first quarter of this year.

Headquartered in Taiwan, Wistron has diversified production globally, operating facilities in the Americas, Europe and Southeast Asia, with Mexico as a key site.

In response to the Trump administration's 30 percent tariff on Mexican-made goods, effective Aug. 1, Wistron President and CEO Jeff Lin (林建勳) said the company has alternative plans ready to mitigate the impact once the tariff details are announced.

In Taiwan, Wistron has broken ground on an R&D center in Taipei's Neihu District, just one kilometer from its new headquarters -- also under construction -- and near the future headquarters of its cloud services subsidiary, Wiwynn Corp.