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Pegatron

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Pegatron Corporation
Native name
和碩聯合科技股份有限公司
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
RevenueNT$1.21 trillion (2015)[2]
NT$20.29 billion (2015)[2]
OwnerASUSTeK Computer Inc. (16.81%)
Number of employees
6000 (2020)[3]
Subsidiaries
Websitewww.pegatroncorp.com
Footnotes / references
[5]
Pegatron Corporation
Traditional Chinese和碩聯合科技股份有限公司
Simplified Chinese和硕联合科技股份有限公司
Transcriptions
Standard Mandarin
Hanyu PinyinHéshuò Liánhé Kējì Gǔfèn Yǒuxiàn Gōngsī

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]

History

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

Operations

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][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

Unihan Corporation

As part of the corporate restructuring of ASUS in 2007, Pegatron acquired Unihan Corporation from ASUS in January 2008.[19] Since 2008, the Unihan Corporation has been a subsidiary of Pegatron Corporation that designs and manufactures computers, computer peripherals and audio-video products.[4]

Corporate social responsibility

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.[20] Pegatron's corporate responsibility system, PUreCSR (which stands for Pegatron & Unihan reduce, reuse, recycle, recovery, replace & repair Corporate Social Responsibility), meets the international standards: the ISO 14001 Environmental Management System, the OHSAS 18001 Occupational Health & Safety Management System, and the QC 080000 Hazardous Substance Process Management System.[21] 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.[21]

PEGA Design and Engineering (PEGA D&E)

PEGA Design and Engineering is Pegatron's design team that was originally branched off from the ASUS design team. The PEGA D&E helps Pegatron's clients with product development, including market research, conceptualization, product design, materials study, and production.[22]
In addition to 3C (computer, communication, consumer) electronic products, Pegatron designs home appliances and home decor products such as LCD TVs, LED lighting, phones and more.[23]

PEGA CASA (Pegatron MID - ID design team)

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, including notebooks, 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

Working conditions

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]

See also

References

  1. ^ a b c "Listing Particulars" (PDF). Archived from the original (PDF) on 2010-11-27.
  2. ^ a b "Pegatron Corp, 4938:TAI profile - FT.com". Financial Times. Retrieved 26 December 2016.
  3. ^ "Pegatron". Fortune. Retrieved 2021-03-11.
  4. ^ a b "Unihan Corporation: Private Company Information - BusinessWeek". Archived from the original on July 12, 2012.
  5. ^ "Pegatron Corp". Bloomberg Finance L.P. Retrieved 2021-08-19.
  6. ^ "Apple supplier Pegatron to set up its first India manufacturing unit in Chennai". Deccan Herald. 2021-02-03. Retrieved 2021-03-07.
  7. ^ "Pegatron Corp. Who We Are". Archived from the original on 2013-01-31.
  8. ^ "Pegatron Corp(4938:TT): Company Description- Businessweek". Archived from the original on 2012-10-13.
  9. ^ "Pegatron Corp". Nikkei Asia. Retrieved 2021-03-07.
  10. ^ "ASUS splits into three". PC Pro. 4 January 2008. Retrieved 1 April 2013.
  11. ^ "ASUS pins future on small and inexpensive laptop". USA Today. 16 May 2008. Retrieved 1 April 2013.
  12. ^ Kubicki, Kristopher (3 January 2008). "New ASUS Corporate Structure Zeroes Employee Pensions". DailyTech. Archived from the original on 10 June 2009. Retrieved 28 March 2009. 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.
  13. ^ "Asustek to spin off motherboard arm". Financial Times. 11 December 2009. Retrieved 1 April 2018.
  14. ^ "The Rundown: Pegatron's Tesla Ambitions, Tech Sector Bonuses, and Cisco's New Software Center". topics.amcham.com.tw. Taiwan Topics. 18 January 2021. Retrieved 18 January 2021.
  15. ^ Everington, Keoni (15 January 2021). "Taiwan's Pegatron teams up with Tesla on charging stations | Taiwan News | 2021/01/15". Taiwan News. Retrieved 2021-02-22.
  16. ^ Balakumar, K (2021-08-08). "Apple-supplier Pegatron to expand its production - Including in India". TechRadar. Retrieved 2021-08-19.
  17. ^ "Pegatron India plant to start production in April, say sources". DIGITIMES. 17 March 2022. Retrieved 2022-03-17.
  18. ^ ASUS FINALLY BIDS FAREWELL TO Pegatron posted by Jeremy Hellstrom April 18, 2012,
  19. ^ "Listing Particulars" (PDF). Archived from the original (PDF) on 2010-11-27.
  20. ^ "Pegatron Corp. EICC". Archived from the original on 2011-05-26. Retrieved 2011-05-30.
  21. ^ a b "Pegatron Corp About PuRECSR". Archived from the original on 2011-09-12. Retrieved 2011-05-30.
  22. ^ "PEGA D&E- About Us". Archived from the original on 2017-04-25. Retrieved 2011-05-27.
  23. ^ "2009 Corporate Sustainability Report of Pegatron Group" (PDF). Archived from the original (PDF) on 2011-06-12. Retrieved 2011-05-30.
  24. ^ a b British Broadcasting Corporation (18 December 2014). "Apple 'failing to protect Chinese factory workers'". British Broadcasting Corporation. London. Retrieved 22 December 2014.
  25. ^ Brian, Chen (22 December 2014). "Apple iPhone factory working conditions exposed in documentary". The Age. Retrieved 22 December 2014.
  26. ^ "Apple Making Big Profits but Chinese Worker's Wage on the Slide" (PDF). China Labor Watch. 23 August 2016. Retrieved 1 February 2018.
  27. ^ "Apple is under fire for "excessive overtime" and illegal working conditions in another Chinese factory". Quartz. 25 August 2016. Retrieved 1 February 2018.
  28. ^ Wang, Yifan (2020-11-09). "Apple Suspends New Business With Pegatron Over Labor Violations". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-03-05.
  29. ^ Shuling, Zhang. "Thousands of people gathered for a labor dispute at Apple's foundry Shanghai Pegatron". CNA.com.tw. Retrieved 2020-12-20.
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