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Tag: Pegatron

  • Apple supplier eyes Vietnam expansion

    Apple supplier eyes Vietnam expansion

    Apple iPhone assembler Pegatron Corp emphasizes its expansion in other countries, including Vietnam, to reduce its dependence on China following the strict Covid-19 lockdowns there.

    “We faced Covid controls for two months. We couldn’t have assessed that in advance, so that makes me emphasize our expansion in Vietnam, India, Indonesia, and North America, Liao Syh-jang, as saying at the company’s annual general meeting in Taipei Wednesday.

    The company is seeking to address labor shortages and the gap between peak and low seasons and increase capacity utilization, he said.

    Pegatron is one of Apple’s three iPhone suppliers along with Foxconn and Wistron.

    In April, the Taiwanese company suspended operations at its Shanghai and Kunshan plants in China due to strict Covid-19 protocols, impacting production and deliveries.

    China has since lifted the restrictions, but still faces a labor shortage that was sparked by the restrictions.

    Chairman T.H. Tung said the company’s customers had “different reasons” for setting up factories in Vietnam, India and Mexico.

    “But one shared factor is the ability to reduce concentration in Shanghai, Suzhou and Chongqing.”

    He added that hiring staff in China has become increasingly difficult over the past seven to eight years.

    Pegatron has mulled expanding to Vietnam since 2020, and is building a factory in the northern city of Hai Phong.

    Several Apple suppliers already have factories in Vietnam, including Foxconn, Luxshare and Goertek, and mainly make AirPods earbuds and HomePod speakers.

    Earlier in June, China’s BYD, one of the leading iPad assemblers, had helped Apple build production lines in Vietnam and could soon start to produce the tablet there.

    It attributed the move to China’s lockdown in and around Shanghai, which disrupted the supply chain for months.

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  • Apple supplier Pegatron to expand Vietnam operations

    Apple supplier Pegatron to expand Vietnam operations

    Pegatron Corp, an assembler for Apple, Microsoft and Sony, plans to increase its investment in Vietnam for electronics production by $101 million.

    Taiwan’s Ministry of Economic Affairs, which has to approve overseas investments by local companies, as saying Pegatron’s investment in Vietnam would be for the production of computers and peripherals, communications equipment and electronic components.

    The company has not disclosed details of the investment.

    It invested $19 million to build its first plant at the Dinh Vu Industrial Zone in Hai Phong City in March last year to produce computers, communications equipment and consumer electronic products.

    It plans to build its second and third plants at a cost of $481 million and $500 million and also move its research and development center from China to Vietnam.

  • Apple supplier Pegatron to invest $1 bln in Vietnam

    Apple supplier Pegatron to invest $1 bln in Vietnam

    Pegatron, a supplier for Apple, Microsoft, and Sony, plans to invest $1 billion in an electronics manufacturing plant in northern Vietnam. The Taiwanese company will invest $19 million in the first phase at the Dinh Vu Industrial Zone in Hai Phong City to produce computing, communications, and consumer electronics, according to a recent report by the Ministry of Planning and Investment submitted to Prime Minister Nguyen Xuan Phuc.

    It has received licenses for this and is seeking licenses for the $481-million second phase.

    The two phases will create 22,500 direct jobs and contribute around VND100 billion ($4.3 million) annually to the government’s coffers.

    Pegatron would invest another $500 million in the plant in 2026-2027.

    It seeks to move its research and development center from China to Vietnam at a suitable time.

    The ministry said it is working with another Taiwanese company, Universal Global Technology, which produces smartphones and earbuds parts for Lenovo and Sony, to set up a manufacturing plant in Vietnam.

    The company, a subsidiary of semiconductor maker ASE Technology Holding, is considering investing $400 million in two phases.

    These are among major companies seeking to shift production facilities from China to Vietnam as they seek to diversify their supply chains following the huge disruptions caused by the Covid-19 pandemic and trade tensions between China and the U.S.

    Apple has begun making its wireless earbuds AirPods Pro in Vietnam, and its contract manufacturer Foxconn said in June that Vietnam was its largest manufacturing hub in Southeast Asia.

    Fifteen Japanese companies, most producers of medical equipment and electronic components, registered in July to move their production from China to Vietnam under a Japanese government-funded scheme.