TAIPEI (TVBS News) — The chairman of Compal Electronics (仁寶), one of Taiwan's largest electronics manufacturing service providers, warned on Thursday (May 29) that fluctuating U.S. tariff policies under President Trump's administration represent a critical uncertainty for global markets. Ray Chen (陳瑞聰) highlighted the far-reaching economic consequences of these trade measures in the wake of a recent federal court decision that characterized Trump's tariff implementation as excessively broad.
To navigate this unpredictable trade environment, Compal has already established manufacturing operations in Mexico and is developing plans for a new facility in Texas, strategic moves designed to circumvent potential tariff barriers. Chen candidly addressed the financial implications of this geographic diversification, noting that U.S.-based production entails substantially higher manufacturing and supply chain costs that will inevitably translate to increased prices for consumers. The company's strategy focuses on maintaining flexibility to accommodate shifting customer requirements amid these evolving trade constraints.
Compounding these tariff concerns, the strengthening New Taiwan dollar has created another layer of complexity for the electronics manufacturer. Chen acknowledged the company's difficulty in rapidly adjusting to currency market shifts, a challenge that has affected export competitiveness. In a defensive financial maneuver, Compal has significantly decreased its U.S. dollar reserves to protect against potential foreign exchange losses as currency volatility continues to threaten profit margins.
Despite navigating this complex economic landscape, Chen expressed confidence in Compal's future trajectory. The company continues to see steady development in its core personal computer manufacturing operations while simultaneously expanding its footprint in the higher-margin cloud service infrastructure segment. Chen pointed to Compal's deepening strategic alliance with AI chip giant NVIDIA (輝達), which has chosen to locate its Taiwan headquarters next to Compal's facilities in the Beitou Shilin Technology Park (北士科), a specialized industrial zone in northern Taipei.
