Apple Supplier Pegatron Eyes U.S. Factory, Decision Coming Soon

Apple supplier Pegatron is in the final stages of evaluating a plan to build a U.S. factory, with a call expected in the next two months, according to a recent Reuters report. The move is the latest sign of major electronics manufacturers shifting production in response to U.S.–China trade tensions and new tariff policies.Speaking on the sidelines of an annual shareholders' meeting, Pegatron President and CEO Kuang-Chih Cheng told reporters that the company is weighing key factors like land and labor, highlighting electricity as the most critical consideration for AI server production. "Like many of our peers and competitors, the areas we're considering are likely to be similar," he said. This follows announcements from other Taiwan-based manufacturers like Foxconn and Wistron, who have revealed expansion plans in Texas, and a massive $100 billion investment from Apple's primary chip supplier, TSMC, to build new plants in Arizona.Pegatron, which assembles iPhones and other devices for Apple and Dell, has been diversifying its manufacturing away from China since President Donald Trump's first term, expanding into Southeast Asia and Mexico. The company already has a maintenance base in Indiana and an office in California, and this move follows similar considerations by other Apple suppliers like Luxshare, who are also weighing U.S. production to sidestep potential tariffs. Cheng also added that Pegatron is set to begin mass production at its AI server production line in Mexico in the third quarter of this year, a plan the company initiated last year.Continue ReadingSpotlight Deal:AirPods Pro 2 On Sale for $169 — Save $80! [Deal]Share Article:Facebook, Twitter, LinkedIn, Reddit, EmailFollow iClarified:Facebook, Twitter, LinkedIn, Newsletter, App Store, YouTube

Jun 7, 2025 - 07:00

Apple Supplier Pegatron Eyes U.S. Factory, Decision Coming Soon

Apple supplier Pegatron is in the final stages of evaluating a plan to build a U.S. factory, with a call expected in the next two months, according to a recent Reuters report. The move is the latest sign of major electronics manufacturers shifting production in response to U.S.–China trade tensions and new tariff policies.

Speaking on the sidelines of an annual shareholders' meeting, Pegatron President and CEO Kuang-Chih Cheng told reporters that the company is weighing key factors like land and labor, highlighting electricity as the most critical consideration for AI server production. "Like many of our peers and competitors, the areas we're considering are likely to be similar," he said. This follows announcements from other Taiwan-based manufacturers like Foxconn and Wistron, who have revealed expansion plans in Texas, and a massive $100 billion investment from Apple's primary chip supplier, TSMC, to build new plants in Arizona.

Pegatron, which assembles iPhones and other devices for Apple and Dell, has been diversifying its manufacturing away from China since President Donald Trump's first term, expanding into Southeast Asia and Mexico. The company already has a maintenance base in Indiana and an office in California, and this move follows similar considerations by other Apple suppliers like Luxshare, who are also weighing U.S. production to sidestep potential tariffs. Cheng also added that Pegatron is set to begin mass production at its AI server production line in Mexico in the third quarter of this year, a plan the company initiated last year.

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