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Pegatron, who first showed no interest in a Plant in the U.S. for Apple Products, is now Reversing Course

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In November Patently Apple posted a report titled "Apple Reportedly Preparing a Responsible U.S. iPhone Plant Back-Up Business Plan." In that report we noted that Apple asked both Foxconn and Pegatron, the two iPhone assemblers, in June to look into making iPhones in the U.S.," a source said. "Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns." Then came the report that Softbank had made an announcement to invest $50 billion in the U.S. and create 50,000 jobs. Pegatron's CEO must have choked on his breakfast that morning seeing the joint Softbank and Foxconn presentation sheet given to President-elect Trump knowing that they could lose out to Foxconn who got the jump on them for a possible U.S. plant. Now Pegatron's tune has changed dramatically on the subject of opening a plant or plants to make Apple products in the U.S.

 

According to a new Asian report today, "Tung Tzu-Hsien, the chairman of Taiwanese key iPhone assembler Pegatron, said the company was primed to at least triple its U.S. operations if necessary, following incoming President Donald Trump's push to expand the U.S. manufacturing sector.

 

Tung told reporters on Sunday evening the company would be able to scale up its manufacturing operations within 12 months.

 

"We have service centers and small assembly lines in the U.S. and have hired up to a thousand staff there," he said at Pegatron's year end party. "It should be no problem at all for us to expand quickly by three to five times, or even ten times, if there is a need from our customers and if all the conditions and policies materialize."

 

He added that while Pegatron had yet to finalize any plans to move production to the U.S., the company was closely monitoring political developments and would be ready to act immediately if conditions were right.

 

Tung's assertive remarks came just a month after he said Pegatron would not necessarily follow its competitors' footsteps to increase investment in its U.S. operations.

 

Pegatron is the smaller domestic rival to Hon Hai Precision Industry, better known as Foxconn Technology Group. Foxconn confirmed in December that it was in preliminary discussions to expand its operations in the U. S. but had not determined the potential scope of its investment."

 

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