Pegatron Nears Decision on U.S. Factory Amid AI Server Expansion Plans

Pegatron, a key supplier for tech giants Apple (NASDAQ:AAPL) and Dell (NYSE:DELL), is nearing a final decision on establishing a U.S.-based factory, with an announcement expected by July. Speaking at the company’s annual shareholders meeting on Friday, President and CEO Kuang-Chih Cheng said the Taiwan-based electronics manufacturer is in the last stages of evaluating its expansion strategy.

The potential U.S. factory would support Pegatron’s growing role in artificial intelligence server production, which Cheng highlighted as a critical focus area. Among several factors under review, electricity availability and cost stand out as the most important consideration due to the high power demands of AI infrastructure. Land and labor costs are also being closely analyzed.

While Cheng didn’t disclose specific locations, he noted Pegatron is evaluating areas similar to those chosen by industry peers. Major Taiwanese tech firms, including Foxconn (SS:601138), Inventec, and Wistron, have recently announced expansions in Texas, a state known for its favorable manufacturing climate and energy resources.

Pegatron is best known for assembling Apple iPhones and is part of a broader movement among Taiwanese manufacturers seeking to diversify operations outside of Asia amid shifting global trade dynamics and rising demand for AI-related hardware.

The decision comes as U.S. policymakers push for increased domestic tech production and supply chain resilience, offering potential incentives to overseas firms. Pegatron’s move could boost its competitiveness in the North American market while aligning with Apple and Dell’s U.S. supply chain strategies.

Investors and industry watchers are now awaiting the company’s formal announcement, which could shape the next phase of its global manufacturing footprint and AI ambitions.