Pegatron to open Indonesia and Vietnam plants as China costs rise

Chairman says mainland lost its competitive edge five years ago

An employee works on the production line of an electronics factory in Shenzhen. Pegatron aims to diversify its production, which is currently heavily concentrated in mainland China. © Reuters

SHUHEI YAMADA, Nikkei Asia Tech chief editor

January 27, 2020 22:19 JST

TAIPEI -- Taiwan's Pegatron, the world's second-largest contract manufacturer of electronics, plans to have new factories up and running in Indonesia and Vietnam by the end of the year.

The move is aimed at moving production away from the company's main plants in China, where operating costs have risen due to higher labor costs and the U.S.-China trade war, said Tung Tzu-hsien, Pegatron's chairman.