Taipei: Pegatron Corp., a leading Taiwanese contract electronics manufacturer, announced plans to commence commercial production of artificial intelligence servers in Mexico by the third quarter of this year. This move marks a significant step in Pegatron's strategy to diversify its production portfolio across North America.
According to Focus Taiwan, Cheng Kuang-chih, Co-CEO of Pegatron, shared insights on the company's expansion plans during their annual general meeting. Cheng emphasized the company's commitment to diversifying its production locations, noting that planning for operations in Mexico began last year. The implementation of automation equipment will address manpower challenges in Mexico, facilitating the efficient production of AI servers.
Cheng also revealed that Pegatron is evaluating potential sites for further expansion in the United States. The decision-making process will be concluded soon, with considerations including manpower availability, land costs, and electricity prices, alongside proximity to competitors' facilities. Earlier this year, Pegatron announced its intention to establish a production base in the U.S. to enhance service delivery to American clients.
Teng Kuo-yen, another Co-CEO, commented on the impact of U.S. tariff policies, stating that Pegatron has proactively managed tariff challenges by diversifying its production locations since the Trump administration. Beyond Mexico, the company is also expanding operations in Malaysia and India, with new production lines set to commence imminently.
In Taiwan, Pegatron is investing NT$5.6 billion (US$187 million) in acquiring a facility from HTC Corp. to bolster its AI server production capacity, reinforcing Taiwan's role as its primary manufacturing hub. At the general meeting, shareholders approved a cash dividend of NT$4.5 per share, following the company's net profit of NT$16.9 billion in 2024.