Apple and Dell Supplier Pegatron Considers US Factory Amid AI Server Expansion

🗝️ Key Points

• Pegatron, a key supplier for Apple (AAPL, Financial) and Dell (DELL), is nearing the final stages of evaluating its plans to establish a factory in the United States.
• The company aims to announce its decision soon, possibly within the next month.
• Critical factors under consideration include land and labor costs, with electricity costs being crucial for AI server production.Pegatron has been planning AI server production lines in Mexico since last year and expects mass production to begin in the third quarter.

Pegatron, a key supplier for Apple (AAPL, Financial) and Dell (DELL), is nearing the final stages of evaluating its plans to establish a factory in the United States. The company aims to announce its decision soon, possibly within the next month. Critical factors under consideration include land and labor costs, with electricity costs being crucial for AI server production.

Pegatron has been planning AI server production lines in Mexico since last year and expects mass production to begin in the third quarter. This move is part of the company’s broader strategy that started during former President Trump’s first term, to expand manufacturing bases from China to Southeast Asia and Mexico. Pegatron maintains a repair base in Indiana and an office in California.

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