Pegatron Warns of Potential US Electronics Shortages Amid Trump Tariffs

In a recent development that has sent ripples through the electronics industry, Taiwan’s Pegatron, a key supplier to major tech giants like Apple and Dell, has issued a stark warning about the potential for electronics shortages in the United States. This comes in the wake of ongoing tariff impositions by former President Donald Trump, which have introduced significant uncertainty and disruption in the supply chain.

Impact of Tariffs on Supply Chain

Pegatron’s chairman, T.H. Tung, expressed concerns during an awards event, highlighting how the erratic nature of the tariffs has left U.S. retailers in a state of confusion. The unpredictability of these tariffs has disrupted shipment decisions, leading to fears that within two months, U.S. shelves could resemble those in third-world countries, marked by empty spaces where electronics once stood.

Market Reaction and Financials

The financial markets have been closely monitoring Pegatron’s situation, especially given its significant role in the electronics supply chain. As of April 23, 2025, Pegatron’s stock was trading at 79.3 TWD on the Taiwan Stock Exchange, a notable drop from its 52-week high of 122 TWD on June 19, 2024. The company’s market capitalization stands at approximately 231.16 trillion TWD, with a price-to-earnings ratio of 12.3473.

Strategic Shifts in Manufacturing

Amid these challenges, there are whispers of a strategic shift in manufacturing. Reports suggest that Apple is considering moving its US-bound iPhone production from China to India. This potential move could see an additional 60 million iPhones manufactured in India, aimed specifically at the US market. This shift would require a significant increase in India’s manufacturing capacity, investments from Apple and its partners like Foxconn and Tata Electronics, and a reevaluation of raw material sourcing, which currently relies heavily on China.

Conclusion

As Pegatron navigates these turbulent waters, the broader implications for the global electronics supply chain remain a topic of intense scrutiny. The company’s ability to adapt to these geopolitical and economic challenges will be crucial in maintaining its pivotal role in the industry. Meanwhile, stakeholders and market watchers will be keenly observing how these developments unfold, particularly with Apple’s potential manufacturing shift to India.