Taiwan’s Pegatron Nears Decision on U.S. Factory Plan Amid AI Server Production Needs
Pegatron, a major Taiwanese supplier for Apple and Dell, is in the final phase of evaluating plans for a new factory in the United States, with a decision expected by this or next month, company president and CEO Kuang-Chih Cheng said on Friday.
Key factors influencing the site selection include land and labor costs, with electricity availability being especially critical due to the factory’s focus on artificial intelligence (AI) server production, Cheng told reporters during the company’s annual shareholders’ meeting.
When asked about possible locations, Cheng noted that Pegatron’s considerations are similar to those of peers and competitors, many of whom are looking at U.S. states like Texas, where Taiwanese manufacturers Foxconn, Inventec, and Wistron have recently announced expansion plans.
Pegatron has been actively diversifying its manufacturing footprint away from China since the Trump administration began imposing trade restrictions, expanding operations in Southeast Asia and Mexico. The company already maintains a repair base in Indiana and an office in California.
Additionally, Pegatron started developing an AI server production line in Mexico last year, with mass production slated to begin in the third quarter.