Quanta invested $79.6 million to build three new factories in the United States or expand server capacity

Oct 12,2023

Recently, Quanta announced on behalf of QMN, a subsidiary of Nashville, Tennessee, that it will spend $79.6 million to build three factories in the California plant area. External speculation suggests that the three new factories built this time are intended to expand local server capacity.

It is reported that QMN's three factory construction projects (Quanta Building 2, Quanta Building 5, and Quanta Building 6) located in the California factory area of the United States will be entrusted to local American builders (McLarney) for construction with transaction amounts of $8.7 million, $62.4 million, and $8.5 million, respectively.

In August of this year, Quanta announced that it would increase its capital to QMN by $135 million through indirect investment. Quanta stated at the time that the capital increase was initiated to meet its business needs, but some legal entities believed that Quanta was expanding the local server capacity through capital increase due to a significant increase in orders from Europe and America.

Last month, Yang Qi, Senior Vice General Manager of Quanta and General Manager of Yunda Technology, stated that data centers and enterprise customers are accelerating the adoption of artificial intelligence (AI) servers, but upstream components are out of stock and cannot fully meet strong demand. He is optimistic that AI will be a development trend for at least 5 to 10 years or even longer in the future.
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