Pegatron Corp (和碩), an iPhone assembler for Apple Inc, is to spend NT$5.64 billion (US$186.82 million) to acquire HTC Corp’s (宏達電) factories in Taoyuan and invest NT$578.57 million in its India subsidiary to expand manufacturing capacity, after its board approved the plans on Wednesday.
The Taoyuan factories would expand production of consumer electronics, and communication and computing devices, while the India investment would boost production of communications devices and possibly automotive electronics later, a Pegatron official told the Taipei Times by telephone yesterday.
Pegatron expects to complete the Taoyuan factory transaction in the third quarter, said the official, who declined to be named.
Photo: Reuters
The company expects a limited revenue impact from US President Donald Trump’s tariff policy, as customers would absorb the costs, the official said.
Pegatron has also adjusted the proportion of revenue and operating costs denominated in US dollars in light of the New Taiwan dollar’s recent appreciation against the greenback, but has not specifically hedged its asset portfolios, the official said.
As an innovative tech firm with end-to-end capabilities in product design, integration and manufacturing, Pegatron is to showcase a wide range of cutting-edge solutions — from artificial intelligence computing and smart mobility to next-generation communications and healthcare devices — at this year’s Computex trade show, which is to take place from Tuesday to Friday next week at Taipei Nangang Exhibition Center Hall 1 and 2.
Meanwhile, HTC said the sale of 17 plots of land and six buildings in Taoyuan to Pegatron would generate a disposal gain of NT$3.9 billion after deducting book value, taxes and related costs.
The transaction aims to optimize the company’s asset management and would cause no impact on its hardware business, while its production lines remain stable, HTC said in a statement.
HTC last quarter reached a US$250 million deal with Google to allow some of its extended reality (XR) research and development staff to join the US tech giant, and granted it a nonexclusive license to HTC’s XR intellectual property, a move that has raised concerns that HTC’s operational scale could shrink further.
The company dismissed the concerns, saying it has sufficient operating cash, a solid financial position and a strong foundation for future development.
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