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Taiwanese contract electronics manufacturer Pegatron expects its first U.S. factory, located in Texas, to be completed by the end of March, with trial production beginning around late March or April, President and CEO Kuang-Chih Cheng said on Friday. The facility marks Pegatron’s first fully established and operated manufacturing site in the United States.

The Texas plant will focus on producing AI server products, including systems powered by Nvidia chips. Pegatron supplies major technology companies such as Apple, Microsoft and Tesla, and joins other Taiwanese manufacturers expanding operations in Texas as part of broader supply-chain diversification.

The move aligns with pressure from the Trump administration for Taiwanese firms to increase U.S. investment. Under a recent U.S.-Taiwan trade deal, Taiwanese companies committed $250 billion in U.S. investments across semiconductors, energy and AI, while tariffs on Taiwanese imports were reduced to 15%. Pegatron has been steadily reducing its reliance on China by expanding into Southeast Asia, Mexico and now the United States.