Compal to Consolidate Existing Business, Expand in Biotech and Medical Fields

Compal Electronics Inc. (2324-TW), a major foundry, released its sales report on Monday (May 23), anticipating that the information and communication industry will expand in the biotech and medical fields with the enhancement of computer computing power and the development of AI and 5G technologies.

According to Compal Chairman Rock Hsu, Compal will consolidate its existing business and strive for further revenue growth this year, aiming to expand in the biotechnology and medical field business in the next five years.

In addition to stabilizing its existing businesses this year, Compal said that it will continue the general direction of the past few years and accelerate the expansion of new businesses.

Among them, Compal expects biotech’s medical applications to expand in the information and communication industry, including future smart hospital-related hardware facilities, software platforms, and even AI applications for precise medical treatment.

As the average life expectancy increases and the pace of aging accelerates, Compal further expects that the demand for long-term medical care services will also increase, including in Taiwan, which has entered an aging society.
Compal will rely on Taiwan’s technological strength in the information and communication industry to develop the biotechnology, medical, and long-term care fields into the next trillion-dollar industry.

Looking ahead to this year, Compal said that despite the global economic and industrial changes, there are still many challenges, including labor shortage, material shortage, electricity shortage, and trade problems between the United States and China.

Still, Compal, which has taken the initiative to promote several new measures with customers, along with digitization, automation, and teamwork, remains confident regarding this year’s operations.

Compal pointed out that it faces various market demands, such as commercial, consumer, education, and gaming, which have seen business development.

Compal will invest in more product development services and diversified businesses, including servers, automotive electronics, 5G solutions, IoT applications, smart medical, and more. These have made steady contributions to operations as technology advances, and the market develops.

As for the global operation layout, Compal said that it will use Taiwan as its R&D innovation base in the future and share regional production capacity to reduce the risk of over-concentration of production.

Last year, Compal also set up a new 5G AIOT application innovation base in Kaohsiung, Taiwan, and acquired land in northern Taiwan to build the group’s corporate headquarters.

In addition to completing the second plant in Vietnam, the company has also successfully started production cooperation with Kinpo Electronics Inc. (2312-TW) in Thailand and added a new production site in Indiana, USA, to accelerate the expansion of its automotive electronics production capacity.