TAIPEI (Taiwan News) — Taiwanese server maker Pegatron will expand its manufacturing base in North America to serve US customers, company leaders said Thursday.
Pegatron Co-CEO Cheng Kuang-chih (鄭光志) said his company is expected to begin mass production at its US sites this year, per CNA. According to Pegatron’s website, the company has two non-manufacturing locations in the US.
Before US President Donald Trump’s January inauguration, Pegatron Co-CEO Johnson Deng (鄧國彥) said the company could quickly convert its Indiana facility to accommodate possible policy changes. He said that producing in the US costs more, adding, “If customers are willing to pay a premium, it remains a viable option.”
During the Thursday briefing, Deng said the company planned to spend NT$9.89 billion (US$300 million) to NT$11.54 billion this year to expand production capacity and buy equipment. However, he said Trump’s tariff policies may cause Pegatron to build a new factory and increase capital expenditure.
Deng said this year’s first quarter will be the weakest for information products as seasonal demand and tariffs see lower consumer electronics and communications products sold. He predicted consumer demand would increase in the following quarters as it recovers from the seasonal slump and Trump’s tariff policies became clearer.
Cheng said Pegatron built Nvidia GB200 servers for a medium-sized US cloud service provider and delivered them in January with good results. He said predicting demand in the server business is difficult due to customers’ testing and ordering patterns, but is hopeful shipments will increase throughout the year.
Pegatron reported revenue of NT$1.13 trillion in 2024, representing a year-on-year decrease of 10.5%. The firm’s gross margin was 4.1%, an increase of 0.4 percentage points year-on-year, which Pegatron attributed to increased efficiency and subsidiary growth.
Pegatron’s non-operating income was NT$14.72 billion representing a 54.1% year-on-year increase. The company attributed this to increased asset valuations, asset disposals, and interest income.
