Pegatron, Hon Hai Take Opposite Approaches To Supply Chain Shuffling

China 2874 Indonesia 87 Info Tech - Tech Hardware 731 Taiwan 185 U.S. 5161 Vietnam 337

Contract electronics manufacturer Pegatron is opening new factories in Vietnam and Indonesia. That extends the industry trend towards anything-but-China (ABC) supply chain strategies that in turn are a response to tariffs and reduced competitiveness of Chinese factories. Indeed, Pegatron’s Chairman, Tung Tzu-hsien, has stated that China “has not been an optimum manufacturing location since more than five years ago”. Pegatron is committing to that statement, with imports to the U.S. from China associated with the firm falling by 77.7% year over year in the fourth quarter. That makes Taiw...

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