Apple supplier Pegatron expects US plant to be completed by end-March

By Wen-Yee Lee

TAIPEI, Jan ⁠23 (Reuters) - Taiwanese ⁠contract ‍electronics manufacturer Pegatron's first U.S. factory, in Texas, is expected to be completed by the end of ‍March, with trial production to begin around then ​or April, President and CEO Kuang-Chih Cheng said on Friday.

The company, a ​supplier to Apple, Microsoft and Tesla, said in October it had acquired an industrial building and land in Texas, joining other Taiwanese tech manufacturers ​investing in the state including 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 produce AI server ‌products, including those using Nvidia chips.

"It is currently scheduled to be completed by the end of ​March, and we should be able ⁠to begin trial production in late March or April."

The Trump administration has been pushing tech powerhouse ‌Taiwan, which runs a large trade surplus with the U.S., to invest more in the country.

The U.S. and Taiwan reached a trade ‌deal last week under which Taiwanese companies will invest $250 billion to boost ‌production of semiconductors, energy and artificial intelligence in the U.S., and the tariff on U.S. imports from Taiwan will be cut to 15% ‍from 20%.

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.

(Reporting by Wen-Yee Lee. Writing by Ben Blanchard. Editing by David Goodman, Mark Potter and Jan Harvey)

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