Taiwanese electronics firms mulling local production for U.S. market

Focus Taiwan
Date: 2019/06/22
By: Pan Chih-yi and Frances Huang

Taipei, June 22 (CNA) Several major Taiwanese contract electronics manufacturers that have plants

in China said recently that they are considering setting up production facilities in Taiwan to supply the United States market, in a bid to avoid U.S. tariffs on China-made products and other trade disputes between the two countries.

Speaking with the press, Pegatron Corp. CEO Liao Syh-jang (廖賜政) said the company is thinking of using a plant in Hsinchu specifically for shipments to the U.S. if the Beijing-Washington trade issues are not resolved.

Pegatron, a PC contract manufacturer that also assembles iPhones, said it had planned to use one of its plants in New Taipei and another in Taoyuan to make products for the U.S. market, but is now considering a new facility in Hsinchu that will concentrate on value-added items with higher profit margins.

Since January, Pegatron has been manufacturing information and communications products for the American market at its plant in Batam, Indonesia, and those shipments are expected to increase in the second half of the year, Liao said.    [FULL  STORY]