Looking to strengthen its global footprint, Pegatron has secured HTC’s Taiwan factories and is ramping up investments in India, poised to scale production across the electronics and automotive sectors.
Pegatron Corporation, an assembler for Apple’s iPhone, has announced plans to acquire HTC’s factories in Taoyuan, Taiwan, and to invest further in its manufacturing base in India. The company’s board approved the moves on Wednesday.
Pegatron will spend NT$5.64 billion (around US$187 million) to purchase the Taoyuan facilities. These factories will expand Pegatron’s capacity to produce consumer electronics and communication and computing devices.
In addition, the firm will invest NT$578.57 million to grow its India operations, focusing on communications equipment with potential future ventures into automotive electronics.
According to a Taipei Times report, the Taoyuan acquisition is expected to be completed by the third quarter of this year. The investment in India will also strengthen Pegatron’s manufacturing presence in the region.
This comes shortly after various reports surfaced, claiming that Tata has rebranded Pegatron India, and is expanding its smartphone assembly base.
Regarding the impact of US tariffs, Pegatron anticipates minimal effect on its revenue, stating that customers will largely absorb any additional costs. The company has also adjusted its revenue and operating costs in US dollars due to recent fluctuations in the Taiwan dollar but has not engaged in specific asset hedging.
Pegatron plans to showcase its latest technological innovations at this year’s Computex trade show in Taipei, highlighting products ranging from artificial intelligence computing and smart mobility to next-generation communications and healthcare devices.
On its part, HTC confirmed the sale of 17 land plots and six buildings in Taoyuan to Pegatron. The deal will yield a disposal gain of NT$3.9 billion after accounting for book value, taxes, and related expenses. HTC said the transaction aims to optimise its asset management and will not affect its hardware business or production lines.
Recently, HTC finalised a US$250 million agreement with Google. The deal transfers some extended reality (XR) research and development staff to Google and grants a nonexclusive licence to HTC’s XR intellectual property.
Despite concerns about a potential downsizing, HTC maintains it has solid finances and a robust foundation for future growth.
Read more: Tata Rebrands Pegatron India, Expands Smartphone Assembly Base
