Taiwan’s Pegatron Corp. expects lower revenue in 2024 despite pushing into artificial intelligence servers and automotive electronics, as weakness in its core iPhone assembly business persists.
The contract manufacturer said it’s finalizing verification of AI server cabinets for major Taiwanese semiconductor companies, with shipments planned for the first quarter. The company confirmed it will produce servers using Nvidia Corp.’s new GB200 chip, seeking to catch up with larger rivals in the AI computing space.
While the fourth quarter will be Pegatron’s strongest this year due to iPhone production, co-CEO S.J. Liao said consumer electronics and networking equipment sales face continued pressure in 2024. The company’s server business currently focuses on tier-two and tier-three cloud providers.
Automotive electronics remains a bright spot, with revenue from the segment projected to grow by double digits this year. The division contributes about 4-9% of total sales, with Pegatron targeting 10% next year.
Management sees potential growth drivers in 2025, including AI-enabled PCs and new consumer electronics products. The company also expects its 5G, 6G, and WiFi 7 networking equipment business to recover next year.
