Separately, Foxconn’s smaller rival Pegatron will allocate US$300 million to US$350 million this year to capital expenditure, partly to grow capacity in Southeast Asia and increase automotive component production in Mexico, company executives told reporters in Taipei on Sunday. Pegatron is also a Tesla Inc. supplier.
Apple Inc. partners Foxconn Technology Group and Pegatron Corp. included Southeast Asia in their expansion plans for 2023, in a sign major global contract electronics manufacturers will continue to add production capacity outside China to mitigate geopolitical and economic risks.
“We will continue to grow our scale in mainland China, the Americas and Southeast Asia, and these efforts will blossom in 2023,” said Young Liu, chairman of Foxconn’s flagship unit Hon Hai Precision Industry Co., at a company event on Sunday.
