Pegatron said to set up stylus manufacturing plant in Vietnam

Pegatron reportedly plans to set up a new plant in Vietnam as part of its plans to ramp up its overseas production in 2020, likely to produce styluses for Samsung’s smartphones.

Supply chain sources also noted that Pegatron may accelerate setting up a plant in Vietnam seeking to land contract production orders from Google for its devices.

In response, Pegatron said that it is still assessing investment environments in Southeast Asia and will officially announce the final decision if made.

Company president SJ Liao stressed that Pegatron will continue to expand its overseas production in 2020, particularly further boosting the capacity at its plant in Batam, Indonesia, which now turns out over one million units of networking and consumer electronic devices a month.

Liao continued that Pegatron will also expand capacities at other production bases outside China, including those in Czech and Mexico, in line with requirements by clients although the US and China have signed phase-1 trade deal.

Pegatron chairman TH Tung also said earlier that faced with the ever-rising labor cost in China, supply chain players have no other choice but to relocate their production to Southeast Asian countries with sufficient labor supply at lower costs, no matter whether the US-China trade war will linger or not.

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