PEGATRON

In January 2008, Asus restructured its operations, creating three independent companies: Asus (for branded computers and electronics), Pegatron (OEM manufacturing of motherboards and components), and Unihan Corporation (non-PC manufacturing, such as cases and molding). During this process, a controversial pension restructuring plan resulted in the payout—rather than continuation—of existing employee contributions. Pegatron was officially spun off from Asus on June 1, 2010.

In recent years, Pegatron has become a key supplier of components for Tesla. During the second wave of the COVID-19 pandemic in India, Pegatron temporarily halted production after employees tested positive. Subsequently, Pegatron's India plant assumed some Apple iPhones production due to pandemic-related disruptions at its Shenzhen facility. In January 2025, Tata Group purchased a 60% stake in Pegatron's India unit.

On 11 March 2026, Pegatron warned that said prolonged disruptions to regional oil supplies or key materials due to the ongoing Middle East conflict could pose risks to the technology supply chain in the future.

Controversies

Working conditions

In December 2014, the BBC accused Pegatron of poor working conditions and employee mistreatment at its factories making Apple products near Shanghai. It found that staff were 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.

In August 2016, the labor rights organization "China Labor Watch" published a report claiming that working conditions had not improved since 2014. They claimed that workers at Pegatron's Shanghai factory worked an average of 80 hours of overtime a month, and that over 62% of workers worked more than 100 overtime hours in March 2016. They also claimed that workers were required to perform up to 1 hour a day of unpaid overwork, that 64% of its maintenance department interns were overworked, and that over 96% of Pegatron workers were only making minimum wage, well below Shanghai's average income despite the extra overtime hours they put in.

In November 2020, the Wall Street Journal accused Apple of using student workers in Pegatron's factories. 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.

In December 2020, Pegatron's Shanghai subsidiary Pegaer Technology (Shanghai) Co., Ltd.「昌碩科技」experienced labor disputes, with thousands gathering to demand salaries. Reports alleged that the factory director and police responded with force, resulting in injuries and several arrests. However, the cited source does not substantiate all of these claims.