TAIPEI (Taiwan News) — Pegatron Chair Tung Tzu-hsien (童子賢) on Tuesday dismissed concerns over Intel's decision to raise prices for consumer and server-grade CPUs, saying short-term price adjustments are a normal result of strong market demand, per UDN.
Speaking to reporters at the Resilience Taiwan Summit, Tung said price increases across integrated circuits, materials, substrates, and passive components indicate an active market rather than a cause for alarm. He explained that when industries experience shortages, companies often rush to secure raw materials or products, which can drive prices higher, according to UDN.
A spin-off of the Acer Group, Pegatron has become a leading electronics manufacturer for some of the world's leading tech brands, including Apple, Sony, and Microsoft. The company offers design and manufacturing services for laptops, desktop units, as well as motherboards and components.
Tung said shortages are a natural outcome of rapid industry expansion, adding that higher prices typically encourage companies to increase production capacity. He said this cycle applies not only to CPUs but also to passive components and semiconductor substrates.
He said the development of the internet is an example of how technology industries evolve through cycles of growth and correction. He said today's internet ecosystem is many times larger than it was in 2000, despite experiencing various fluctuations along the way, according to UDN.
Tung then pointed to AI's growing role in medicine as an example, saying that technologies such as AI-assisted systems and the da Vinci surgical system have improved medical procedures and accelerated drug development, reducing research timelines by about two-thirds.
Regarding reports that Nvidia's next-generation Kyber server rack could face delays due to bottlenecks in key circuit board production, Tung said short-term supply constraints are common in the technology industry. He noted that Nvidia has stated its product roadmap remains unchanged, per CNA.
"I'm actually more concerned with the underlying trends," Tung said, adding that factory production planning and research projects are not determined within one or two weeks but require a three- to five-year outlook.
Tung said he remains optimistic about the technology sector, saying continued technological advances that improve convenience, quality of life, efficiency, and productivity will support long-term growth.
