Facing soaring AI server demand and tariff pressures, Pegatron may soon build a US factory; a decision that could reshape its North American strategy.
Taiwanese electronics manufacturer Pegatron Corp is exploring the possibility of establishing a server plant in the United States to meet growing demand for AI servers and to navigate US tariff challenges.
Pegatron, a key assembler of Apple iPhones, has expanded into the server market over the past two years. The company now expects server shipments to rise in the second half of 2025, following a strong performance earlier this year.
According to a report by the Taipei Times, Co-CEO Gary Cheng announced the potential move during the firm’s annual shareholders’ meeting.
Cheng stated that North America remained an important market for the company, adding that their plans extended beyond Mexico to include potential sites in the US. He mentioned that a final decision might be reached as early as the end of the month, pending approval from the board of directors.
While Texas is among the possible locations, Pegatron is evaluating several factors such as electricity costs, land availability, and labour expenses. Cheng stressed that the company would likely choose an area already established as a tech manufacturing hub.
Last year, Pegatron set up a facility in Mexico, with server mass production slated to begin in Q3 2025. The move is part of a wider strategy to enhance flexibility and reduce exposure to geopolitical risks.
Despite increased demand, the firm holds a cautious outlook for the rest of the year due to ongoing tariff uncertainties. Many clients accelerated orders in the first half of 2025 after a temporary 90-day pause in US tariffs announced in April.
Beyond AI servers, Pegatron is branching into electric vehicles (EVs), working with Dutch chipmaker NXP Semiconductors. Cheng said the company plans to launch new EV-related products with a partner automaker by year-end.
Products will include onboard computers, engine control units, and charging infrastructure.
Addressing currency fluctuations, co-CEO Johnson Teng noted that the firm is using hedging strategies to manage risks from the New Taiwan dollar’s recent appreciation, as most revenues are in US dollars.
