TAIPEI (Taiwan News) — Pegatron said Friday that its AI server plant in Mexico will go into mass production in Q3, with a US factory under final review.

At its annual shareholders’ meeting, Pegatron Co-CEO Cheng Kuang-chih (鄭光志) said the Mexican plant, launched to ease labor constraints, will feature a fully automated production line, per CNA. Pegatron is also considering US locations based on land, labor, and power supply,

Pegatron Co-CEO Teng Kuo-yen (鄧國彥) said the second half of this year will follow seasonal patterns and show stronger performance. Pegatron expects its PC segment to outpace the market’s projected 5–10% growth thanks to AI PC adoption, he added.

Consumer electronics saw little growth last year but may benefit from new gaming and Internet of Things products, per Anue. Meanwhile, new smartphone launches in September could revive its lagging communications segment.

To navigate global tariffs, Pegatron is ramping up output from plants in Malaysia, India, and Mexico. The company collaborates closely with clients to optimize production and adjust to shifting trade policies, Teng explained.

On China’s rare earth restrictions, Pegatron has already worked with clients on redesigns and sourcing alternatives. Most of the supply chain issues have now been resolved, the company said.

Cheng called Nvidia’s new Taiwan HQ an exciting development that also raises the bar for suppliers. He said Pegatron will focus on R&D and a culture that retains talent in a competitive field.