Compal Electronics said new customer orders are moving into scheduling preparation in the second half, with volume production set to begin in Q1 next year as it expands from B300 AI servers into full rack-scale AI systems. The company reported Q2 net profit attributable to parent company shareholders of NT$3.13 billion, up 59% from the prior quarter and 549% from a year earlier, the highest level in nearly seven quarters, helped by both core business growth and more than NT$1.78 billion in non-operating income from financial asset valuation gains. Server demand has become Compal's main growth driver, with AI servers contributing 70% to 80% of server revenue in Q2 and management targeting servers at 10% of total revenue this year before rising to 30% to 40% next year. The company is building out a three-site manufacturing footprint across Taiwan, Texas and Vietnam, including its newly opened Daxi facility for L10 system manufacturing and L11 rack integration. Compal said rising component costs, especially memory, are pressuring the PC market even as higher-end and AI PC models support average selling prices. Against that backdrop, it expects non-PC revenue share to climb above 50% next year if server targets are met. Quanta Computer, reporting the same day, posted record Q2 revenue of NT$1.04 trillion and said AI servers remained 75% to 80% of server revenue, underscoring how Taiwan's contract manufacturers are shifting from traditional PC assembly toward AI computing infrastructure.