Pegatron Accelerates "Made in USA" Strategy: New Indiana Facility to Complete by March

Pegatron Accelerates "Made in USA" Strategy: New Indiana Facility to Complete by March

Pegatron, the Taiwanese electronics manufacturing giant and key supplier for Apple and Dell, has announced that its new production facility in Indiana, USA, is on track for completion by the end of March 2026. This move is a direct response to the "Made in USA" initiatives championed by the new U.S. administration.

Strategic Pivot to Local Production

T.H. Tung, Chairman of Pegatron, stated during a press briefing in Taipei that the expansion into the U.S. market is driven by customer demand for localized manufacturing. The Indiana facility will initially focus on repair services and final assembly. This strategic step is designed to mitigate geopolitical risks and navigate increasingly complex trade barriers.

The North American Duo: Indiana and Mexico

Beyond the United States, Pegatron is aggressively scaling its investments in Mexico. This dual-track strategy leverages:

• The USMCA Advantage: Manufacturing in Mexico allows Pegatron to benefit from lower labor costs while maintaining duty-free access to the U.S. market under the United States-Mexico-Canada Agreement.

• Nearshoring Trend: By establishing a presence in both Indiana and Mexico, Pegatron is positioning itself at the heart of the "Nearshoring" movement—bringing production closer to the end consumer.

Diversifying Beyond China

This move reflects a broader global shift in the electronics industry. Manufacturers are increasingly diversifying their supply chains to reduce reliance on China, seeking to build more resilient and flexible production networks across North America and Southeast Asia.

• Pegatron's move is a clear example of a "China Plus One" strategy, which isn't about completely abandoning China, but rather establishing backup manufacturing bases in politically less risky countries to prevent supply chain disruptions.

• Further reports suggest that Pegatron's North American factories may not only produce smartphones, but are also targeting components for electric vehicles (EVs) and server equipment for data centers—industries receiving special incentives from the U.S. government.

• Given significantly higher labor costs in the U.S. compared to Asia, Pegatron's main challenge is implementing automation and robotics in its Indiana factory to reduce human labor and maintain cost competitiveness.

• Pegatron isn't alone; competitors like Foxconn and Quanta Computer are also rapidly expanding in Mexico and the U.S., making North America a new battleground for Taiwanese electronics manufacturers. 

 

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