How Wistron Became an Unsung Winner of the AI Boom Through Its Nvidia Partnership

Wistron reported 2025 revenue of $70.2 billion, more than double its previous year’s total, driven by a strategic partnership with Nvidia to manufacture AI servers. According to Fortune, the Taipei-based electronics manufacturer rose 298 spots to rank No. 198 on the current Fortune Global 500 list, marking the largest jump on the ranking this year.

Servers accounted for 70% of Wistron’s total sales in 2025. The company continued this growth trajectory into 2026, reporting $55 billion in revenue for the first half of the year, according to Fortune.

Wistron’s Shift to AI Server Manufacturing

While the company initially manufactured Nvidia graphics cards for gaming, the release of ChatGPT by OpenAI in late 2022 shifted demand toward high-capacity AI servers. These systems, which stack multiple processors in large racks, required Wistron to rapidly expand its infrastructure and workforce, according to Fortune.

To meet this demand, Wistron opened a 287,000-square-foot server plant in Zhubei, Taiwan, last year. Fortune reports that Nvidia booked the entire capacity of that facility through 2026 immediately upon its inauguration. In response, Wistron leased and converted a nearby textile factory to increase server production.

Simon Lin, Wistron’s chair, noted that the pace of AI development has accelerated product cycles. Lin stated that server generations previously lasted two and a half to three years, with a one-year design phase and two years in the market, but AI now brings revolutionary leap products every year, according to Fortune.

Evolution from the Smiling Curve Model

The company’s current position follows a long-term effort to move away from low-margin assembly. Wistron was spun off from laptop maker Acer in 2001, with Lin serving as the initial chair and CEO. Lin is credited by Acer cofounder Stan Shih with developing the smiling curve economic model, which suggests that the lowest margins exist in the middle of the supply chain—assembly and manufacturing—while higher margins are found in design and retail, according to Fortune.

Wistron struggled during the transition to smartphones following the 2007 debut of the iPhone. Lin recalled that the company was stuck in the middle as the PC business weakened and smartphones were not yet a primary focus. While Wistron opened one of India’s first iPhone factories in 2017, it exited the smartphone business by 2023 due to low margins and labor unrest at its Karnataka plant, according to Fortune.

U.S. Investment and Texas Facilities

Wistron is expanding its footprint outside of Taiwan and mainland China, with existing facilities in Mexico, Brazil, the Philippines, the Czech Republic, Vietnam, and Malaysia. The company’s most significant recent move is a $761 million investment in two complexes near Fort Worth, totaling 1.09 million square feet for assembling Nvidia AI supercomputers, according to Fortune.

The investment was formalized in August, following threats from President Donald Trump to impose a 32% tariff on imports from Taiwan. Lin told Fortune that while the decision was slightly forced by tariffs, it became a reasonable business move because AI servers can weigh over six tons, making local assembly more practical than air or sea transport.

Establishing the Texas operations required Wistron to ship equipment from Southeast Asia and train workers from the ground up, as Lin claimed the necessary equipment was unavailable for purchase within the U.S., according to Fortune.

Even during dark times, you need to make yourself ready for any change in the future.

Simon Lin, via Fortune