Memory prices have soared recently, and a US-based foreign investment report warned that the profits of the hardware supply chain may be affected, naming five Taiwanese manufacturers including Pegatron. Tong Zixian, chairman of foundry Pegatron, sai...
Memory prices have soared recently, and a US-based foreign investment report warned that the profits of the hardware supply chain may be affected, naming five Taiwanese manufacturers including Pegatron. Tong Zixian, chairman of foundry Pegatron, said today that the judgment of the foreign investment report is "a little strange." Usually, the brand chamber is responsible for the dispatch of components, and the foundry only pays for them. The rise and fall of the price of key components has nothing to do with the foundry.
Tong Zixian attended the Ernst & Young Technology Forum in Yushan in the afternoon and was interviewed by the media. When talking about the memory issue, he pointed out, "I am relatively optimistic about this phenomenon." Memory is a key component whose price will fluctuate. When the world's major information electronics brands find Taiwanese OEMs, in many cases the brands will control the key components themselves, including memories, central processing units (CPUs) or display modules.
The outside world is concerned about whether future generations of factories will suffer losses due to rising memory prices. Tong Zixian made it clear that "no" because brand owners want to control key decisions and will be responsible for dispatching key components and negotiating for them. What the foundry does is to pay for the program. It first helps the brand owner to advance the payment for the goods, and finally the brand owner pays the foundry. Therefore, the rise and fall of the price of key components has nothing to do with the foundry.
Tong Zixian said bluntly that if the foreign investment report talked about the rise and fall of memory prices, "I would find this judgment a bit strange." If there is an imbalance between the supply and demand of electronic components, for example, if the demand is very high now, the price of memory will increase. In the past six months, Pegatron's subsidiary Jingshuo has also faced a shortage of carrier boards. In response, carrier board factories around the world, including South Korea, Japan and Taiwan, are expanding production.
He emphasized that the memory market has been in a downturn for a while, and now it is back to hot sales, which means that the overall demand for the information electronics industry is booming. In addition to the superficial price increase, the memory factory is expected to increase from one shift to two shifts. If the shift to three shifts is still unable to meet market demand, production will be expanded.
Tong Zixian further analyzed that components will face rising demand every few years, and continuous expansion of production will cause imbalances in demand. There is a stable cycle. The electronics industry is actually very experienced in such cycles. Quanta and Compal have been established for more than 30 years and have seen this cycle many times. "I believe that Taiwan's electronics industry will not be a problem in coping with this cycle."
When the media asked about Pegatron's overseas production capacity layout, Tong Zixian pointed out that no matter where it sets up factories in the United States, Mexico, India or Vietnam, it will pay attention to the local energy and power infrastructure. Texas has the most complete energy infrastructure among all production bases in the United States, followed by California. However, labor costs in California are soaring. Therefore, many Taiwanese businessmen consider Arizona or Texas, which will provide a more ideal solution to the problems of energy layout and labor supply shortages.
Tong Zixian attended the listing ceremony of Pegatron Group's Yongqing Electronics earlier today and said that the listing of Yongqing symbolizes the ability of Taiwan's industry to move from the "sacred mountain that protects the country" to the "mountains that protect the country", bringing Taiwan's information industry up wave after wave. He also revealed that Pegatron Group has many little golden chickens lined up to be listed in the future.
