Pegatron chairman expects better macros in 2024

Chloe Liao, Taipei; Jessie Shen, DIGITIMES Asia 0


In 2024, macroeconomic conditions will be more favorable than the previous year due to inventory correction in supply chains, regional wars, and monetary tightening, according to T.H. Tung, chairman of Pegatron.

The inventory problem that is causing worries in Taiwan's industrial supply chains will be resolved in 2024, said Tung. Meanwhile, previously launched international conflicts are about to be addressed. Besides, the US is nearing the conclusion of its monetary tightening program, which anticipates a pause in interest rate increases, Tung indicated.

Indications suggest that the component and semiconductor supply chains are beginning to recover, Tung noted. Despite a 4.6% decline in revenue for Pegatron, the corresponding trend was observed among other electronics companies as well. Everything is not covered by revenue, according to Tung. Quanta Computer's revenue, for instance, decreased while profits rose.

In addition, Tung clarified that Pegatron's decision to hand over control of PegaGlobe (Kunshan), a subsidiary in eastern China, is not a divestiture, but rather a shift in the company's focus.

Luxshare Precision Industry has acquired majority ownership of PegaGlobe (Kunshan).

Tung noted that Pegatron has intensified its business expansion in India, Vietnam, and Mexico. In China, the company continues to manufacture in Shanghai, Kunshan, Suzhou, and Chongqing. Currently, only the Kunshan factory has received strategic partner investment, while the other factories remain untouched.