Pegatron
Pegatron Corporation (stylised as PEGATRON; Chinese: 和碩聯合科技股份有限公司) is a Taiwanese electronics manufacturing company that mainly develops computing, communications and consumer electronics for branded vendors.[6] It also develops, designs and manufactures computer peripherals and components. Pegatron's primary products include notebooks, netbook computers, desktop computers, game consoles, handheld devices, motherboards, video cards and LCD TVs, as well as broadband communication products such as smartphones, set-top boxes and cable modems.[7][8]
Native name
和碩聯合科技股份有限公司
June 27, 2007[1]
Worldwide
ASUSTeK Computer Inc. (16.81%)
6000 (2020)[3]
和碩聯合科技股份有限公司
和硕联合科技股份有限公司
Héshuò Liánhé Kējì Gǔfèn Yǒuxiàn Gōngsī
Héshuò Liánhé Kējì Gǔfèn Yǒuxiàn Gōngsī
History[edit]
In January 2008, ASUS began a major restructuring of its operations, splitting into three independent companies:[9] ASUS (focused on applied first-party branded computers and electronics); Pegatron (focused on OEM manufacturing of motherboards and components); and Unihan Corporation (focused on non-PC manufacturing such as cases and moulding).[10][11] 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.[12] On 1 June 2010, ASUS spun off Pegatron.[13]
Pegatron has in recent years become a significant components supplier for Tesla Inc.[14][15] During the second wave of the COVID-19 pandemic in India, Pegatron had to halt their production when some employees tested positive for the virus.[16] Pegatron's India plant took over some production of Apple iPhones due to the pandemic affecting its Shenzhen operations.[17]
Corporate profile[edit]
Operations[edit]
Pegatron's principal executive offices and many assets are located in Taiwan.[18] 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, and Japan.[1] Pegatron has manufacturing plants in Taiwan, the Czech Republic, Mexico, Indonesia, and China, and customer service centers in the United States and Japan.[1]
Controversies[edit]
Working conditions[edit]
In December 2014, a BBC investigation exposed poor working conditions and employee mistreatment at Pegatron factories making Apple products near Shanghai.[24] 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.[24][25]
In August 2016, China Labor Watch published 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.[26][27]
In November 2020, Apple discovered 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.[28]
In December 2020, Pegatron's Shanghai subsidiary Pegaer Technology (Shanghai) Co., Ltd.「昌碩科技」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.[29]
