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iPhone supplier Pegatron aims to expand production from China to Vietnam, India and other countries

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You may have heard that there were some pandemic-related lockdowns in several Chinese cities early this year, and more specifically in April. The point is that many parts manufacturers and telephone technicians have factories in affected regions. iPhone supplier Pegatron is also there, and now Reuters reports: the company is focusing on expanding its factories outside of China.

iPhone supplier Pegatron wants to expand factories outside of China

Taiwanese company Pegatron makes about 20 to 30% of iPhones. Recent lockdowns in China have made the company look more seriously at expanding into other countries.

In April of this year, Pegatron was forced to suspend operations at two major factories in China: Shanghai and Kunshan. The situation affected production and supply, and although lockdown restrictions have since been lifted, the company is still experiencing some issues.

Pegatron is reportedly struggling with staff shortages (the situation was also exacerbated by the restrictions). Pegatron President Liao Syh-jang stressed that the company was faced with lockdown-related controls for two months and that such a situation could not have been assessed in advance. Now Pegatron wants to expand in Vietnam, India, Indonesia and Mexico, aiming to solve the labor shortage and the gap between the high and low seasons. Chairman TH Tung also said that recruiting in China has become more difficult over the past seven years. eight years. However, he does not predict a bleak future. Tung stated the rest of 2022 should be better for the company as the pandemic eases and China lifts restrictions.

Pegatron is not the only company optimistic for the remaining half of the year. Foxconn, another iPhone assembler, also suggested there should be a more stable supply in the second half of 2022.

Recently there were reports that two models of the upcoming iPhone 14 series were running a bit late in terms of their production schedule (the iPhone 14 Max and Pro Max). The problem there was related to panel shipments that were reportedly delayed.

More companies wanting to have factories in more places around the world is definitely a win for the tech industry. First, production delays would be harder to find, and so products would need to have more inventory. Yes, this means customers don’t have to wait for longer shipping dates. And let’s not forget that any slowdown will likely result in businesses losing a significant amount of money. Let’s hope the industry as a whole has learned the lessons of the past two years and will work towards more flexibility in the future.

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