TAIPEI (Taiwan News) — Contract manufacturer Pegatron said Tuesday it’s expanding US operations with a new facility in Georgetown, Texas.

Its subsidiary, Pegatron Technologies LLC, purchased a plant and land in Blue Springs Business Park for NT$900 million (US$29 million), per CNA. Covering 12.52 acres, the site will handle production and operations for US clients, per UDN.

Market analysts said the plant will focus on servers and automotive electronics, with the potential to expand to Pegatron’s full product lineup. The move aims to strengthen ties with US customers and mitigate geopolitical risks.

Pegatron Co-CEO Cheng Kuang-chih (鄭光志) said the company considered land and labor costs when selecting the Texas site. He added that proximity to other industry peers and affordable electricity were other factors.

Pegatron expects the Blue Springs facility to become operational next year, boosting its North American presence amid shifting global supply chains. The company also set up a server production line at its Mexico plant, which began mass production in Q3.

The investment follows a broader trend of Taiwanese tech firms establishing US sites, including Foxconn and Quanta.