Pegatron Corp plans to begin commercial artificial intelligence server production in Mexico during the third quarter as Taiwan’s second-largest electronics manufacturer evaluates a potential US factory expansion.
The company will start AI server production in Mexico in Q3, Co-CEO Cheng Kuang-chih said Friday at the annual shareholder meeting. A decision on US factory establishment is expected by July, with power supply and engineering talent availability serving as primary considerations.
Shareholders approved a cash dividend of NT$4.5 ($0.14) per share despite challenging market conditions. The iPhone assembler reported 2024 revenue of NT$1.13 trillion ($34.4 billion), down 10.5% year-over-year, though net profit rose 7.6% to NT$16.9 billion ($515 million).
Pegatron delivered the first GB200 AI server racks to a US customer in January, positioning the company ahead of rivals in the growing AI infrastructure market. The manufacturer has been diversifying production away from China since 2018, establishing facilities across Southeast Asia and North America.
Co-CEO Teng Kuo-yen acknowledged recent challenges from China’s rare earth export restrictions, calling it “painful” but noting most clients have found alternative solutions. The company acquired HTC’s Taoyuan factories for NT$5.64 billion ($186.8 million) in May to expand domestic production capacity.
Capital expenditure this year will exceed the original $300-350 million plan, primarily funding overseas manufacturing equipment as trade tensions reshape global supply chains.
