This year, the relocation of production lines of semiconductor factories is undoubtedly one of the topics of market concern. According to a report from Juheng.com, in addition to announcing the quarterly financial report at the French Forum, Pegatron also stated that the company's board of directors approved a US$150 million investment to set up factories in India, and the possibility of setting up factories in the United States will not be ruled out in the future.

Pegatron General Manager Liao Cizheng pointed out that the Vietnam factory invested last year also started mass production this month. In the future, it will not be ruled out that the possibility of setting up a factory in the United States will be evaluated in response to the needs of customers for local manufacturing and local production.

Liao Cizheng said that the purpose of the layout in the United States is to respond to customers' desire to have a local supply chain, reducing the time it takes for most products to be shipped from Asia or other production bases to the United States. Pegatron currently has 11 production bases around the world. The investment in recent years includes investment in Indonesia last year and investment in Vietnam and India this year.

Pegatron announced in the middle of the year that it would set up a subsidiary in India. In less than half a year, it further announced today that it would invest US$150 million to set up a factory there. Liao Cizheng said that investing in India is the long-term direction of Pegatron in the future. However, due to the epidemic, the construction and operation schedule of the factory is still conservative. It is expected that the production time will be as early as the second half of next year or the year after, and the products will be adjusted according to customer needs.

Regarding existing investments, Liao Cizheng said that he does not rule out increasing investments in Indonesia and Vietnam. Among them, Indonesia mainly produces network products, and the Vietnam plant also went into production smoothly this month, mainly producing IoT and consumer products. In the future, it also plans to introduce the production of communication products.

Liao Cizheng also emphasized that Pegatron's global production capacity adjustments in line with customer needs are not aimed at diversifying mainland China's production capacity, nor do they have a target for the proportion of mainland and non-mainland production, because the proportion of production capacity will be dynamically adjusted after the production capacity in various regions is put into production over time.