Nvidia Secures Entire Wistron Plant Through 2026 to Build AI Servers
Warning! GuruFocus has detected 4 Warning Signs with NVDA.
Nvidia reportedly booked all server manufacturing capacity at Wistron's recently launched facility in Zhubei, Taiwan, to produce its next-generation Blackwell and Rubin AI systems. The orders, which extend through 2026, reflect Nvidia's aggressive push to secure critical AI infrastructure capacity as demand continues to outstrip supply.
The plant began operating this quarter and was officially inaugurated on June 19. Wistron's CEO confirmed at the event that contracts for AI server production already extend at least a year, while Economic Daily and Commercial Times reported that Nvidia has effectively locked in all future output.
Wistron's collective operations produce an estimated 240,000 Blackwell-based systems per quarter, and the company has warned that its capacity may not be able to meet future demand by 2026. To address this, Wistron has secured an adjacent buildingset to become a second AI server site next yearto double its Taiwan-based output.
AI server shipments have become a primary growth engine not only for Wistron but also for Quanta and Foxconn. Wistron is simultaneously expanding its U.S. presence with a new facility near Dallas, Texas.
By reserving full production at Wistron's Zhubei plant, Nvidia is ensuring that its cloud and system partners receive AI servers in required quantities while competitors face tighter supply constraints. Nvidia's control of the CoWoS supply chain and now server assembly capacity signals its strategic intent to dominate the AI hardware ecosystem.
This article first appeared on GuruFocus.
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