Compal Electronics, a leading manufacturer of notebook computers, is set to diversify its global production capabilities by establishing its inaugural automotive electronics manufacturing facility in Europe. This strategic move aims to mitigate geopolitical risks and respond to the deceleration in the PC market.
In a recent announcement, Compal President Martin Wong revealed the company's plans during a press briefing held before the annual employee gala. "After expanding our operations in Mexico last year, we're now in the process of selecting a location for a new manufacturing site in Europe, targeted for 2024," Wong stated.
Poland, home to Compal's existing repair and after-sales service hub, is among the top contenders for the new plant's location. The company is also exploring mergers and acquisitions as viable strategies to integrate into Europe's manufacturing landscape.
Additionally, Compal is branching out into the Indonesian market by constructing its first facility dedicated to medical device production. This expansion reflects the shifting dynamics in the tech industry, highlighting the declining momentum in the PC sector post-pandemic and the automotive sector's rising significance for electronics manufacturers.
Compal, which provides services to tech giants such as Apple, Google, HP, and Dell, has been broadening its portfolio to include 5G technology, medical equipment, servers, and automotive electronics. In 2023, the company reported double-digit growth in its server, automotive, and medical divisions, contrasting with a downturn in notebook sales.
Reflecting on recent trends, Compal Vice Chairman Ray Chen remarked, "The notebook sector experienced a revival over the past three years. However, the first half of 2023 presented considerable challenges, and we anticipate 2024 will bring similar obstacles due to ongoing conflicts, inflation, and geopolitical instability."
This expansion underscores Compal's commitment to innovation and its proactive approach to navigating the complexities of the global market, ensuring its continued growth and resilience in the face of industry fluctuations.