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Pegatron

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Pegatron Corporation
Native name
Hòa thạc liên hợp khoa kỹ cổ phân hữu hạn công tư
Company typePublic
TWSE:4938
IndustryElectronics manufacturing
FoundedJune 27, 2007;17 years ago(2007-06-27)[1]
Headquarters
Beitou District,Taipei
,
Taiwan
Area served
Worldwide
Key people
T.H. Tung(Chairman)
ProductsMotherboards,graphics cards,laptops,netbooks,smartphones,game consoles,set-top boxes,cable modems
RevenueDecreaseUS$40.357 billion (2023)[2]
DecreaseUS$505 million (2023)[2]
Total assetsUS$18.176 billion (2023)[2]
OwnerASUSTeK Computer Inc.(16.81%)
Number of employees
6000 (2013)[2]
Subsidiaries
Websitewww.pegatroncorp.com
Footnotes / references
[4]
Pegatron Corporation
Traditional ChineseHòa thạc liên hợp khoa kỹ cổ phân hữu hạn công tư
Simplified ChineseHòa thạc liên hợp khoa kỹ cổ phân hữu hạn công tư
Transcriptions
Standard Mandarin
Hanyu PinyinHéshuò Liánhé Kējì Gǔfèn Yǒuxiàn Gōngsī

Pegatron Corporation(stylised asPEGATRON;Chinese:Hòa thạc liên hợp khoa kỹ cổ phân hữu hạn công tư) is a Taiwaneseelectronics manufacturing companythat mainly develops computing, communications andconsumer electronicsfor branded vendors.[5]It also develops, designs and manufacturescomputer peripheralsandcomponents.Pegatron's primary products includenotebooks,netbookcomputers,desktop computers,game consoles,handheld devices,motherboards,video cardsandLCD TVs,as well as broadband communication products such assmartphones,set-top boxesandcable modems.[6][7]

History

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In January 2008,ASUSbegan a major restructuring of its operations, splitting into three independent companies:[8]ASUS (focused on applied first-party branded computers and electronics); Pegatron (focused on OEM manufacturing of motherboards and components); andUnihan Corporation(focused on non-PC manufacturing such as cases and moulding).[9][10]In the process of the restructuring, a highly criticised pension plan restructuring effectively zeroed out the existing pension balances. The company paid out all contributions previously made by employees.[11]On 1 June 2010, ASUS spun off Pegatron.[12]

Pegatron has in recent years become a significant components supplier forTesla Inc.[13][14]During the second wave of theCOVID-19 pandemicin India, Pegatron had to halt their production when some employees tested positive for the virus.[15]Pegatron's India plant took over some production of AppleiPhonesdue to the pandemic affecting its Shenzhen operations.[16]

Corporate profile

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Operations

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Pegatron's principal executive offices and many assets are located in Taiwan.[17]As of March 2010, Pegatron had approximately 5,646 employees stationed in Taiwan, 89,521 in China, 2,400 in the Czech Republic and 200 in the United States, Mexico, andJapan.[1][needs update]Pegatron has manufacturing plants in Taiwan, the Czech Republic, Mexico, Indonesia, and China, and customer service centers in the United States and Japan.[1]

Subsidiaries

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Unihan Corporation

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As part of the corporate restructuring ofASUSin 2007, Pegatron acquiredUnihan Corporationfrom ASUS in January 2008.[18]Since 2008, the Unihan Corporation has been a subsidiary of Pegatron Corporation that designs and manufactures computers,computer peripheralsand audio-video products.[3]

Corporate social responsibility

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In June 2008, with its PUreCSR corporate responsibility system, Pegatron became a member of the EICC (Electronic Industry Citizenship Coalition), a group of companies in the electronics industry that supports the implementation of the Code of Conduct throughout the electronics and information and communications technology supply chain, ensuring safe working conditions, respect and dignity to employees, and environmentally responsible manufacturing processes.[19]Pegatron's corporate responsibility system, PUreCSR (which stands for Pegatron & Unihanreduce,reuse,recycle,recovery,replace &repair Corporate Social Responsibility), meets the international standards: theISO 14001Environmental Management System, theOHSAS 18001Occupational Health & Safety Management System, and the QC 080000 Hazardous Substance Process Management System.[20]On 18 May 2010, the board of directors at Pegatron unanimously approved to appropriate a sum within 0.5% of net income every year to charity.[20]

PEGA Design and Engineering (PEGA D&E)

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PEGA Design and Engineering is Pegatron's design team that was originally branched off from theASUSdesign team. The PEGA D&E helps Pegatron's clients with product development, including market research, conceptualization, product design, materials study, and production.[21]
In addition to 3C (computer, communication, consumer) electronic products, Pegatron designs home appliances and home decor products such asLCD TVs,LEDlighting,phonesand more.[22]

PEGA CASA (Pegatron MID - ID design team)

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Led by Alain Lee, the PEGA CASA design team (originally branched off from the Asus design team) is dedicated to the design and development of non-IT products in addition to the existing IT product design, includingnotebooks,smartphones,e-books, network communication equipment, displays, projectors, cleaning robots and more. These non-IT products include home appliances (PEGA CASA), fashion accessories, vehicle accessories (PEGA MOTORS), building interior design and building materials, multimedia ads and marketing, and cultural businesses.

Controversies

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Working conditions

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In December 2014, aBBCinvestigation exposed poor working conditions and employee mistreatment at Pegatron factories makingAppleproducts nearShanghai.[23]It found staff being forced to work eighteen days in a row without any days off, workers falling asleep on the production line during shifts lasting between 12 and 16 hours, forced overtime, and a cramped dormitory room which twelve workers were forced to share.[23][24]

In August 2016,China Labor Watchpublished a report which stated that working conditions had not improved since 2014. The average worker at Pegatron's Shanghai factory works 80 hours of overtime a month. Over 62% of workers worked more than 100 overtime hours in March 2016. Workers are required to perform up to 1 hour a day of unpaid overwork. 64% of its maintenance department interns are overworked. At the same time, over 96% of Pegatron workers are only making minimum wage, well below Shanghai's average income despite the extra overtime hours they put in.[25][26]

In November 2020,Applediscovered that Pegatron was using student workers in factories in mainland China. Due to this, Apple suspended their business with Pegatron and stated that they would not grant the company any new business until this practice was ceased.[27]

In December 2020, Pegatron's Shanghai subsidiary Pegaer Technology (Shanghai) Co., Ltd. “Xương thạc khoa kỹ” broke out in labor disputes. Thousands of people gathered to ask for salaries. In response, the factory director led the beatings of the people who had gathered, and many police officers came to the scene to suppress it. Some people were beaten to the ground, and many of their fates remain unknown. More than ten people were arrested, triggering a rights defense incident.[28]

See also

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References

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  1. ^abc"Listing Particulars"(PDF).Archived fromthe original(PDF)on 2010-11-27.
  2. ^abcd"Pegratron".Fortune Global 500.Fortune.Retrieved2024-08-24.
  3. ^ab"Unihan Corporation: Private Company Information - BusinessWeek".Archived fromthe originalon July 12, 2012.
  4. ^"Pegatron Corp".Bloomberg Finance L.P.Retrieved2021-08-19.
  5. ^"Apple supplier Pegatron to set up its first India manufacturing unit in Chennai".Deccan Herald.2021-02-03.Retrieved2021-03-07.
  6. ^"Pegatron Corp. Who We Are".Archived fromthe originalon 2013-01-31.
  7. ^"Pegatron Corp(4938:TT): Company Description- Businessweek".Archived fromthe originalon 2012-10-13.
  8. ^"Pegatron Corp".Nikkei Asia.Retrieved2021-03-07.
  9. ^"ASUS splits into three".PC Pro. 4 January 2008.Retrieved1 April2013.
  10. ^"ASUS pins future on small and inexpensive laptop".USA Today.16 May 2008.Retrieved1 April2013.
  11. ^Kubicki, Kristopher (3 January 2008)."New ASUS Corporate Structure Zeroes Employee Pensions".DailyTech.Archived fromthe originalon 10 June 2009.Retrieved28 March2009.Under the new corporate entity, ASUS employees were paid out all pension plans regardless of maturity as of 1 January 2008. All employees at the two new companies must start their tenure from scratch.
  12. ^"Asustek to spin off motherboard arm".Financial Times.11 December 2009.Retrieved1 April2018.
  13. ^"The Rundown: Pegatron's Tesla Ambitions, Tech Sector Bonuses, and Cisco's New Software Center".topics.amcham.com.tw.Taiwan Topics. 18 January 2021.Retrieved18 January2021.
  14. ^Everington, Keoni (15 January 2021)."Taiwan's Pegatron teams up with Tesla on charging stations | Taiwan News | 2021/01/15".Taiwan News.Retrieved2021-02-22.
  15. ^Balakumar, K (2021-08-08)."Apple-supplier Pegatron to expand its production - Including in India".TechRadar.Retrieved2021-08-19.
  16. ^"Pegatron India plant to start production in April, say sources".DIGITIMES.17 March 2022.Retrieved2022-03-17.
  17. ^ASUS FINALLY BIDS FAREWELL TO Pegatronposted by Jeremy Hellstrom April 18, 2012,
  18. ^"Listing Particulars"(PDF).Archived fromthe original(PDF)on 2010-11-27.
  19. ^"Pegatron Corp. EICC".Archived fromthe originalon 2011-05-26.Retrieved2011-05-30.
  20. ^ab"Pegatron Corp About PuRECSR".Archived fromthe originalon 2011-09-12.Retrieved2011-05-30.
  21. ^"PEGA D&E- About Us".Archived fromthe originalon 2017-04-25.Retrieved2011-05-27.
  22. ^"2009 Corporate Sustainability Report of Pegatron Group"(PDF).Archived fromthe original(PDF)on 2011-06-12.Retrieved2011-05-30.
  23. ^abBritish Broadcasting Corporation (18 December 2014)."Apple 'failing to protect Chinese factory workers'".British Broadcasting Corporation.London.Retrieved22 December2014.
  24. ^Brian, Chen (22 December 2014)."Apple iPhone factory working conditions exposed in documentary".The Age.Retrieved22 December2014.
  25. ^"Apple Making Big Profits but Chinese Worker's Wage on the Slide"(PDF).China Labor Watch.23 August 2016.Retrieved1 February2018.
  26. ^"Apple is under fire for" excessive overtime "and illegal working conditions in another Chinese factory".Quartz.25 August 2016.Retrieved1 February2018.
  27. ^Wang, Yifan (2020-11-09)."Apple Suspends New Business With Pegatron Over Labor Violations".Wall Street Journal.ISSN0099-9660.Retrieved2021-03-05.
  28. ^Shuling, Zhang."Thousands of people gathered for a labor dispute at Apple's foundry Shanghai Pegatron".CNA.com.tw.Retrieved2020-12-20.
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