Pegatron to shift output to EU, Mexico

NORMAL SEASON: The firm’s chief financial officer rejected reports that Apple cut orders due to disappointing high-season demand, saying its plants are running at full capacity

Taipei Times
Date: Nov 09, 2018
By: Ted Chen  /  Staff reporter

Contract electronics manufacturer Pegatron Corp (和碩) yesterday said that it has begun exploring overseas expansion options to cope with escalating US-China trade tensions.

The company is to reallocate production from China to its existing sites in the Czech Republic and Mexico as it reviews its global footprints, Pegatron chief executive officer S.J. Liao (廖賜政) told an investors’ teleconference, adding that it is also considering setting up new manufacturing bases in Southeast Asia.

Although reallocating production capacity and moving equipment between the company’s locations would not require substantial capital expenditure, the change would push up management costs, Liao said.

Setting up brand new production lines in Southeast Asia would be costlier and it would take two to three years before such facilities would come online, he added.

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