Pegatron has gained land use rights for a 423,195-square feet industrial site in Mahindra City, India, according to a company filing with the Taiwan Stock Exchange (TWSE). The total transaction value is INR1.03 billion (US$14.08 million).
Pegatron pointed out that the investment in India is meant to be used for its future operation.
In the wake of US-China trade tensions, Taiwan-based ODMs have been expanding their capacities outside of China with Pegatron mainly showing interest in investing in Vietnam and India.
Pegatron's capex will exceed US$300 million in 2021, higher than that of 2020, and the sum is expected to be used primarily in expanding production lines in Vietnam and India, some market observers noted.
Pegatron also announced earlier to invest VND1.77 trillion (US$83.19 million) to construct a new plant in Vietnam that is set to be completed by the second half of 2022, but the schedule for volume production there will depend on clients' demand.
