Pegatron to Purchase HTC Factories, Bolster Presence in India
Updating the State of Pegatron Corp's Plant Acquisitions and Investments
Acquiring HTC Factories in Taoyuan, Taiwan:- Status: Pegatron Corporation is officially moving forward with the acquisition of HTC's factories in Taoyuan, Taiwan. The acquisition is anticipated to close during the third quarter of this year.[1]- Cost: The estimated expenditure for the acquisition stands at NT$5.64 billion, which equates to approximately US$186.82 million.[1]- Goals: The primary objective is to broaden Pegatron's production capacity for consumer electronics, along with communication and computing devices.[1]
Investment in India Subsidiary:- Status: Pegatron is also investing in its Indian arm for growth, focusing on expanding its communications device production, with potential future ventures in automotive electronics.[1]- Investment Amount: The company will pump in NT$578.57 million to enhance its manufacturing capabilities in India.[1]- Reason: The investment aims to fortify Pegatron's regional manufacturing presence and possibly branch out into emerging sectors like automotive electronics.[1]
These strategic moves clearly display Pegatron's ambition to solidify its position in Asia and diversify its manufacturing capabilities across a range of industries.
[1]Based on Pegatron Corp's official announcement and reports from the Taipei Times.
In other news, Pegatron is gearing up to display a host of cutting-edge technologies at this year's Computex trade show. The showcase will include AI computing, smart mobility, next-generation communications, and healthcare devices. The event is scheduled for next week at Taipei Nangang Exhibition Center Hall 1 and 2.
Meanwhile, HTC is selling 17 plots of land and six buildings in Taoyuan to Pegatron, generating a projected disposal gain of NT$3.9 billion following deductions, tax payments, and related costs. HTC asserts that this transaction will have no adverse effects on its hardware business, as its production lines remain stable, and is a means to better manage its assets.
Recent concerns regarding HTC's operational scale have been dismissed. The company maintains a strong financial position, sufficient operating cash, and stands steadfast for future development, despite recent deals like the US$250 million agreement with Google for several XR research and development staff and a non-exclusive license to HTC's XR intellectual property.
Photo: Reuters.
In the scope of Pegatron Corp's expansions, they are intending to invest in technology sectors such as AI computing, smart mobility, next-generation communications, and healthcare devices, as shown at this year's Computex trade show. Furthermore, Pegatron Corporation is planning to make significant advancements in the finance sector by investing NT$578.57 million in its Indian arm for the production of communications devices and potential future ventures in automotive electronics.
