Pegatron Technology (Shanghai) Co., Ltd. has moved out of Shanghai

According to relevant information, Pegatron Technology, located in Shanghai, has moved all of its facilities out of Shanghai. Pegatron Technology is the largest foundry invested by Apple in Shanghai and a subsidiary of computer manufacturing giant Asus. After the overall relocation of Pegatron Technology, the original production capacity will be delivered to another subsidiary of Asus, Asus Technology located in Kunshan.

At present, all of Pegatron Technology's production lines have been packaged and shipped to Kunshan, and Pegatron Technology's 80000 employees will also be transferred to work in Kunshan one after another. According to Pegatron Technology employees, their workload has significantly decreased in recent times, and many production lines have started to lay off employees during holidays. Many of them left the factory early due to reduced workload and reduced income.

Pegatron Technology is a OEM company for Asus computers. For a long time, Pegatron Technology has not only OEM for Asus, but also OEM and produce for Apple, mainly responsible for Apple's laptop and some mobile phone businesses. It is Apple's largest OEM factory located in Shanghai. Its investment scale has also reached 1.5 billion US dollars, and it is also among the highest production in Apple's foundry.

The reason why Pegatron Technology is favored by Apple is not only because it belongs to Asus, but also because it has a research and development team that other foundries do not have, and can independently solve departmental problems during the production process. This has also led Apple to always consider Pegatron technology as its capable player, and the cooperation between the two sides has been ongoing for a long time.

Why did Pegatron leave Shanghai?

Whether in terms of the number of employees or the research and development team, Pegatron Technology is one of the top OEM factories. So why would such an excellent enterprise choose to leave Shanghai at this time? In fact, the reason why Pegatron Technology left Shanghai is very simple. The decline in profits has made it difficult for Pegatron Technology to bear its daily operating costs, and it can only choose to merge with the struggling Shishuo Technology.

In recent months, Pegatron Technology has received very few orders, with many employees working less than 5 hours a day. This has also led to a large number of Pegatron Technology employees choosing to resign and try their luck at other factories. Many people are not aware of the reason for the decrease in order volume. In addition to Apple's relocation to India, there is also a main reason.

The reason for the decline in orders

The reason for the decline in Pegatron technology orders is due to Apple, which has announced plans to hand over the basic model of the iPhone 15 to Indian factories for production. Originally, this type of product was produced in domestic OEM factories, which also reduced the number of orders received by Pegatron Technology. Meanwhile, due to serious economic problems in Europe and America, local purchasing power has declined.

At present, the aftermath of the bankruptcy of European and American banks has begun to affect Chinese factories, and even Pegatron Technology's parent company, Asus, has reduced its orders at Pegatron Technology. And according to Pegatron Technology's personnel recruitment staff, in recent months Pegatron Technology has stopped recruiting new workers, which has never happened before, as it only worries about too many people.

The impact of Apple's supply chain shift

Since Apple announced that it would transfer its industrial chain transfer to India, Foxconn, as a long-term partner of Apple, has taken the lead in building a new factory in India with an investment of 6 billion yuan, mainly producing old models within the iPhone X. Now Apple has handed over the iPhone 15, a new model that will be released this year, to Indian factories, which has brought an impact to domestic foundries.

According to industry insiders, the 14 Apple foundries currently operating in China have accepted Apple's request and will gradually shift their industrial lines to India. Pegatron Technology, as Apple's largest foundry in Shanghai, is currently facing the problem of how to handle Apple's legacy industrial line, as Pegatron Technology does not intend to relocate to India.

In fact, it was precisely because Pegatron Technology did not decide to accept Apple's requirements that the orders Apple delivered to it gradually decreased. In the future, as Apple's domestic production capacity gradually shifts out, Pegatron Technology will ultimately face the situation of being kicked out by Apple. Therefore, at this point, Pegatron Technology chooses to relocate the entire line, and the overall packaging and transfer of employees is the most suitable method.