Pegatron Corp (和碩), a key assembler of Apple Inc’s iPhones, expressed optimism on Friday that the traditional peak season in the second half of the year would drive revenue growth and help its overall operations outperform the first half.
“Revenue in the second half of the year is expected to surpass that in the first half, as the period typically marks the industry’s peak season,” a Pegatron official told the Taipei Times by telephone on Friday, after the company reported first-half revenue of NT$539.76 billion (US$18.48 billion), up 7.07 percent from the same period last year.
The company said it would continue to closely monitor developments related to US tariffs and foreign exchange fluctuations, while pressing forward with overseas capacity expansion.
Photo: Annabelle Chih, Bloomberg
The company established a manufacturing facility in Mexico last year, with mass production of servers at the site expected to begin in the third quarter, said the official, who declined to be named.
Pegatron had previously disclosed collaboration with a leading US electric vehicle (EV) maker, and the official added that the company also plans to launch new products with two other automakers from the US, Japan or Europe, with mass production expected to begin by the end of this year, the official said.
The company on Thursday posted revenue of NT$78.77 billion for last month, up 11.05 percent year-on-year, but down 8.07 percent from a month earlier.
Second-quarter revenue totaled NT$267.33 billion, rising 5.37 percent compared with the same period last year, but slipping 1.87 percent from the previous quarter, the company said.
While the front-loading of orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods boosted the company’s sales in the second quarter, the sharp appreciation of the New Taiwan dollar against the US dollar weighed on revenue, the official said, without disclosing the exact figure of foreign-exchange losses.
Pegatron shipped 990,000 notebook computers last month, up 27.74 percent from the previous month, the company said.
Total notebook shipments in the second quarter reached 2.37 million units, up 25.39 percent quarter-on-quarter and 18.5 percent year-on-year, surpassing the company’s earlier forecast of low-teens growth, it said.
The front-loading effect was particularly strong for its notebook shipments in the second quarter, the official said.
However, the outlook for third-quarter notebook shipments remains unclear, as most clients are adopting a wait-and-see approach on tariffs, the official added.
Server shipments also performed better in the second quarter than in the first quarter, the official said.
The company last month said that it expected server shipments in the second half of the year to outpace those in the first half.
As Pegatron’s artificial intelligence servers have completed product verification by a mid-sized US cloud service provider and are expected to begin shipments in the second half, it would benefit the company’s third-quarter revenue growth, Yuanta Securities Investment Consulting Co (元大投顧) said in a note on Friday.
However, the potential absence of another wave of front-loaded notebook orders and growing competition from Chinese smartphone brands could weigh on Pegatron’s business, Yuanta said.
WEAKER ACTIVITY: The sharpest deterioration was seen in the electronics and optical components sector, with the production index falling 13.2 points to 44.5 Taiwan’s manufacturing sector last month contracted for a second consecutive month, with the purchasing managers’ index (PMI) slipping to 48, reflecting ongoing caution over trade uncertainties, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The decline reflects growing caution among companies amid uncertainty surrounding US tariffs, semiconductor duties and automotive import levies, and it is also likely linked to fading front-loading activity, CIER president Lien Hsien-ming (連賢明) said. “Some clients have started shifting orders to Southeast Asian countries where tariff regimes are already clear,” Lien told a news conference. Firms across the supply chain are also lowering stock levels to mitigate
Six Taiwanese companies, including contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), made the 2025 Fortune Global 500 list of the world’s largest firms by revenue. In a report published by New York-based Fortune magazine on Tuesday, Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), ranked highest among Taiwanese firms, placing 28th with revenue of US$213.69 billion. Up 60 spots from last year, TSMC rose to No. 126 with US$90.16 billion in revenue, followed by Quanta Computer Inc (廣達) at 348th, Pegatron Corp (和碩) at 461st, CPC Corp, Taiwan (台灣中油) at 494th and Wistron Corp (緯創) at
NEW PRODUCTS: MediaTek plans to roll out new products this quarter, including a flagship mobile phone chip and a GB10 chip that it is codeveloping with Nvidia Corp MediaTek Inc (聯發科) yesterday projected that revenue this quarter would dip by 7 to 13 percent to between NT$130.1 billion and NT$140 billion (US$4.38 billion and US$4.71 billion), compared with NT$150.37 billion last quarter, which it attributed to subdued front-loading demand and unfavorable foreign exchange rates. The Hsinchu-based chip designer said that the forecast factored in the negative effects of an estimated 6 percent appreciation of the New Taiwan dollar against the greenback. “As some demand has been pulled into the first half of the year and resulted in a different quarterly pattern, we expect the third quarter revenue to decline sequentially,”
ASE Technology Holding Co (ASE, 日月光投控), the world’s biggest chip assembly and testing service provider, yesterday said it would boost equipment capital expenditure by up to 16 percent for this year to cope with strong customer demand for artificial intelligence (AI) applications. Aside from AI, a growing demand for semiconductors used in the automotive and industrial sectors is to drive ASE’s capacity next year, the Kaohsiung-based company said. “We do see the disparity between AI and other general sectors, and that pretty much aligns the scenario in the first half of this year,” ASE chief operating officer Tien Wu (吳田玉) told an