Introduction
Pegatron, a major supplier for Apple and Dell, is nearing a decision regarding its factory plans in the United States, with an announcement expected this month or next.Context
The company's president and CEO, Kuang-Chih Cheng, highlighted that key considerations influencing their location decision include land and labor costs; however, electricity stands out as the most critical factor for the production of artificial intelligence (AI) servers.Developments
During an annual shareholders' meeting, Cheng noted that potential locations under consideration are likely similar to those evaluated by peers in the industry. Recent expansion announcements from Taiwanese manufacturers such as Foxconn, Inventec, and Wistron further emphasize the trend towards U.S. investments.Pegatron has been actively diversifying its manufacturing operations away from China since the first term of U.S. President Donald Trump, expanding its footprint into Southeast Asia and Mexico. Currently, the company operates a maintenance base in Indiana and has an office in California.
Additionally, Pegatron is progressing with plans for its AI server production line in Mexico, with mass production scheduled to commence in the third quarter of this year, Cheng stated.