Apple Supplier Pegatron Aims to Finish U.S. Plant by End of March

Pegatron, a major Taiwanese electronics manufacturer and key supplier to Apple, expects construction of its first U.S. factory in Texas to be completed by the end of March, with trial production set to begin shortly after.

Company President and CEO Kuang-Chih Cheng said on Friday that test runs at the facility could start in late March or April. The Texas site marks Pegatron’s first manufacturing plant that is both built and operated in the United States.

The company, which also supplies Microsoft and Tesla, revealed in October that it had purchased industrial land and a building in Texas. Pegatron is joining a growing group of Taiwanese tech firms investing in the state, including Foxconn, Inventec and Wistron.

According to Cheng, the factory will focus on producing AI server products, including systems that use Nvidia chips.

The investment comes as the U.S. government continues to encourage Taiwan one of the world’s leading technology hubs and a country with a large trade surplus with the U.S. to expand manufacturing operations on American soil. Last week, the U.S. and Taiwan reached a trade agreement under which Taiwanese companies committed to investing $250 billion in U.S. industries such as semiconductors, energy and artificial intelligence. As part of the deal, tariffs on U.S. imports from Taiwan will be reduced from 20% to 15%.

Pegatron has been steadily reducing its reliance on China since President Donald Trump’s first term, expanding manufacturing into Southeast Asia and Mexico. The company already operates a maintenance base in Indiana and maintains an office in California.