Pegatron Laid out Electric Vehicle Plans to Focus on ECUs
Taiwanese electronic contract manufacturer Pegatron announced their strategies on electric vehicle development to focus on electronic control units and is expecting to see double-digit growth yearly in the electric vehicle market sales for the next five to ten years.
The contract manufacturer plans to deploy manufacturing sites in Europe and North America outside of China and Taiwan to support productions locally as stated at their earnings call yesterday.
Pegatron CEO Liao Syh-jang (廖賜政) pointed out three key components in the electric vehicle industry being batteries, electronic control systems, and motors, among which, he said ECUs best suit Pegatron to expand their technologies on.
Electronic control units are embedded systems that control electrical systems in electric vehicles. Though it requires more complicated production and design compared to the electronic industry where Pegatron is one of the largest players, he stated that current techniques could be extended to the ECU area.
Due to variations for electric vehicle customizations and existing regulatory frameworks in the markets, enabling timely local support would be more pivotal than reducing production costs when choosing manufacturing locations. Pegatron is therefore planning on setting production sites in Europe and North America.
Pegatron revealed 2020 yearly revenue indicating that sales for Tesla electric vehicle’s center console manufacturing had grown to allow the sales of automotive electronics clinching 17% of the fourth-quarter revenue, seeing a stark increase compared to the automotive electronics taking up a usual 10% in the past quarterly gains.
Since investment and production on the manufacturing sites in India and Vietnam will start in the second half of the year, Pegatron will spend US$ 3.5 to 4 billion on equipment, which is relatively higher than their usual expenses.
Liao Syh-jang also emphasizes green economy and green productions will be the future direction for Pegatron.
Sources: Commercial Times (in Mandarin)
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