Pegatron Corp. signaled it may join rivals in establishing production facilities in the US as the company navigates uncertainties surrounding Donald Trump’s tariff policies.
The Taiwanese electronics manufacturer announced capital expenditure plans of $300-350 million for 2025 during an investor conference on Wednesday. While these funds were initially earmarked for capacity expansion and equipment, company executives indicated the figure could increase to accommodate potential new production sites.
Co-CEO Tong Chih-hsin noted that Pegatron’s server production in Mexico will commence this year to better serve US customers. The company has also completed initial verification for server products with Taiwanese clients in 2023, with final verification expected this quarter and small-batch orders anticipated in Q2.
Pegatron’s stance on US manufacturing has notably softened since January, when executives were more cautious about such investments. Industry analysts believe the company will likely establish server production in the US, though the location remains undecided.
If Pegatron proceeds with US manufacturing plans, it would become the fourth major Taiwanese electronics manufacturer to respond to the Trump administration’s “Made in America” initiative, following Foxconn, Quanta, and Wistron.
