Optimizing Resource Allocation to Strengthen Dual Growth Engines in Cloud Infrastructure and Edge AI

Compal Electronics (“Compal”; TWSE: 2324) announced today that its Board of Directors has approved a plan to spin off and transfer the research and development (R&D) and sales operations of its server-related Infrastructure Solutions Business Group (ISBG) to Fusionite Corporation (“Fusionite”), a wholly owned subsidiary of Compal. The record date for the spin-off is tentatively scheduled for December 31, 2026.

The net business value of the transferred operations, calculated as transferred assets less assumed liabilities, is approximately NT$600 million. Based on this value, Compal will receive 60 million newly issued common shares of Fusionite with a par value of NT$10 per share. As Fusionite is a wholly owned subsidiary of Compal, and the value of the equity interests received by Compal is equivalent to the value of the transferred business, the transaction will have no impact on Compal shareholders’ equity. The transferred business will continue normal operations without interruption. An independent expert has issued a fairness opinion confirming the reasonableness of the share consideration, and all related procedures will be conducted in accordance with applicable laws and regulations.

In recent years, rapid advancements in AI have fueled robust growth in global server demand. Compal has continued to strengthen its server business, expanding its product portfolio from server boards to complete systems and rack-scale solutions. Its customer base spans enterprise customers, NeoClouds, and leading CSPs. The Company is also actively expanding its business footprint across Taiwan, North America, and Vietnam, underscoring the strong growth momentum of its server business.

Given that the server business differs significantly from Compal’s traditional PC and smart device businesses in terms of technology requirements, business development approaches, and operating models, Compal has decided to implement this spin-off to enhance specialization and improve operational efficiency. Under the plan, the R&D and sales operations of ISBG will be transferred to Fusionite, while manufacturing operations will remain with Compal.

Through a more independent operating structure, Fusionite will gain greater flexibility in management and resource allocation, enabling it to adopt business practices better aligned with the dynamics of the server industry. This includes enhanced decision-making agility, performance management, talent incentives, and customer engagement capabilities, all of which are expected to accelerate business expansion and strengthen market competitiveness.

Upon completion of the spin-off, Compal will continue to focus on the development of high-value-added businesses, including Edge AI Devices and Intelligent Systems, while Fusionite will concentrate on expanding its Cloud Infrastructure solutions. In addition, Compal will remain responsible for server product manufacturing and will continue to strengthen its global manufacturing and fulfillment capabilities.

Through enhanced specialization and more effective resource allocation, both companies are expected to further improve operational efficiency and market competitiveness, generate greater group-wide synergies, and create sustainable long-term value for shareholders.

About Compal

Established in 1984, Compal has grown into a leading global manufacturer of computers and smart devices, partnering with top-tier brands worldwide. Compal was recognized by CommonWealth Magazine as one of Taiwan's top 10 manufacturers and has consistently ranked among the Forbes Global 2000 companies. Compal has actively expanded into new growth areas, including cloud servers, automotive electronics, smart medical and healthcare, and advanced communication solutions. Headquartered in Taipei, Taiwan, Compal operates design and production facilities in the United States, Taiwan, China, Vietnam, Mexico, Brazil, and Poland. Learn more, visit www.compal.com

Media Contact

Jack Wang    Vice President and Spokesperson   +886-2-8797-8588    Investor@compal.com