The first U.S. factory of Taiwanese electronics manufacturer Pegatron will be completed by the end of March, according to President and CEO Kuang-Chih Cheng. Trial production for this factory in Texas is expected to begin in March or April.
Pegatron, which is a supplier to Apple, Microsoft, and Tesla, said in October that it had acquired an industrial building and land in Texas. Other Taiwanese tech manufacturers operating in the state include Foxconn, Inventec, and Wistron.
“The U.S. plant is our first factory established and operated in the United States,” Cheng told reporters in Taipei. The factory will be producing AI server products, including those using Nvidia chips.
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Pegatron has been diversifying manufacturing sites away from China since U.S. President Donald Trump’s first term, expanding into Southeast Asia and Mexico. It already has a maintenance base in Indiana and an office in California. Pegatron also recently struck a deal with Indian company Tata Electronics, where Tata Electronics acquired a 60% controlling stake in the Indian arm of Pegatron.
Taiwan-based Pegatron operates three iPhone production plants in India, including one near Chennai in India’s southern state of Tamil Nadu. The deal comes less than a year after Tata Electronics acquired smartphone assembly company Wistron’s Indian business.
Some key members from Pegatron, including those with tech expertise and operational experience, will continue to work at the plants, according to a person familiar with the matter
The Trump administration also recently signed a deal worth $250 billion with Taiwan, in a move designed to help the United States boost domestic semiconductor manufacturing. Under this deal, Taiwanese semiconductor and tech companies have agreed to make direct investments into the U.S. semiconductor industry.
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According to a press release, these investments will span across semiconductors, energy, and AI “production and innovation”. Taiwan will also supply an additional $250 billion in credit guarantees for additional investments from these semiconductors and tech enterprises, according to the commerce department. The timeline for the investments is unclear.
Semiconductors are the foundational components of modern technology. They power computing systems in products ranging from smartphones and automobiles to telecommunications equipment and military weapons.
The U.S. share of global wafer fabrication declined sharply from 37 percent in 1990 to less than 10 percent in 2024, according to the U.S. Department of Commerce. Today, most semiconductors are fabricated in East Asia due to foreign industrial policies.