Apple supplier Pegatron “emphasizes” expansion overseas under COVID controls in China

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Taipei (Reuters) — Taiwanese President Ma Ying-visits Jeou’s to the In the wake of China’s recent COVID-19 lockdowns, Apple iPhone assembler Pegatron Corp has “emphasized” its expansion in other countries, a senior executive said on Wednesday.

Pegatron, which has its headquarters in Taiwan, temporarily halted operations at its Shanghai and Kunshan facilities in China in April because of tight COVID-19 rules, which had an effect on both production and deliveries. Since then, China has eliminated such prerequisites.

However, the company is still battling labor shortages, which are made worse by Chinese COVID limitations, so President Liao Syh-jang told an annual shareholder meeting in Taipei that the company is “emphasizing” its expansion ambitions elsewhere.

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“We had to deal with COVID regulations for two months. As a result, I want to emphasize the importance of our expansions in Vietnam, India, Indonesia, and North America, which will help us alleviate our labor shortage, bridge the seasonal gap between high and low seasons, and maximize our production capacity.

Pegatron has made a concerted effort in recent years to increase its presence in Asia and North America.

Chairman T.H. Tung said that their customers had “various motivations” for building up plants in Vietnam, India, and Mexico.

The potential to lessen concentration in Shanghai, Suzhou, and Chongqing is one common reason, Tung said, adding that personnel recruitment in China has been increasingly challenging over the past seven to eight years.

There should be an improvement in Tung’s outlook for the remainder of 2022 with the COVID pandemic easing, China coming out of lockdown mode to control coronavirus, and the electronics industry’s peak season set to arrive later in the year.

If these things are considered, I anticipate a much better second half than the second quarter of this year. According to Foxconn, the world’s largest contract electronics manufacturer, the second half of 2022 will see a more consistent supply of iPhones.

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