Pegatron

Pegatron Corporation (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 to branded vendors, but also engages in the development, design and manufacturing of computer peripherals and components. Pegatron's primary products include notebooks, netbook computers, desktop computers, game consoles, handheld devices, motherboards, video cards, LCD TVs, as well as broadband communication products such as smartphones, set-top boxes and cable modems.[4][5]

Pegatron Corporation
Native name
和碩聯合科技股份有限公司
TypePublic
IndustryElectronics
FoundedJune 27, 2007 (2007-06-27) as a spin-off of ASUSTeK Computer[1]
Headquarters
Beitou District, Taipei
,
Taiwan
Area served
Worldwide
Key people
T.H. Tung (Chairman)
ProductsMotherboards, Graphics cards, Laptops, Netbooks, Smart phones, Game consoles, Set-top boxes, Cable modems
RevenueNT$ 1.21 Trillion (2015)[2]
NT$ 20.29 Billion (2015)[2]
Number of employees
177,950 (2015)[2]
Subsidiaries
Websitepegatroncorp.com
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

History

In January 2008, ASUSTeK Computer began a major restructuring of its operations, splitting into three independent companies: 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 molding).[6][7] In the process of the restructuring, a highly criticized pension-plan restructuring effectively zeroed out the existing pension balances. The company paid out all contributions previously made by employees.[8]

On 1 June 2010, Asus spun off Pegatron Corp.[9]

They have become a significant components supplier for Tesla Inc..[10]

Corporate profile

Operations

Pegatron's principal executive offices and many assets are located in Taiwan.[11] As of March 2010, Pegatron had approximately 5,646 employees stationed in Taiwan, 89,521 in China, 2,400 in the Czech Republic, 200 in each of the United States, Mexico and Japan.[1] Pegatron has manufacturing plants in Taiwan, the Czech Republic, Mexico, and China, and customer service centers in the United States and Japan.[1]

Unihan Corporation

As part of the corporate restructuring of ASUSTeK Computer starting in 2007, Pegatron acquired Unihan Corporation (Chinese: 永碩聯合國際股份有限公司) from ASUSTeK in January 2008.[12] Since 2008, the Unihan Corporation has been a subsidiary of Pegatron Corporation that designs and manufactures computers, computer peripherals and audio-video products.[3]

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 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.[13] Pegatron's corporate responsibility system, PUreCSR (which stands for "P"egatron & "U"nihan "re"duce, "re"use, "re"cycle, "re"covery, "re"place & "re"pair Corporate Social Responsibility), meets the international standards: the ISO 14001 Environmental Management System, the OHSAS 18001 occupational Health and Safety Management System, and the QC 080000 Hazardous Substance Process Management System.[14] 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.[14]

PEGA Design and Engineering (PEGA D&E)

PEGA Design and Engineering is Pegatron's design team that was originally branched off from the ASUSTeK design team. The PEGA D&E helps Pegatron's clients with product development, including market research, conceptualization, product design, materials study and production.[15]
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.[16]

PEGA CASA (Pegatron MID - ID design team)

Led by Alain Lee, PEGA CASA design team (that was 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.[17] It uncovered staff forced to work eighteen days straight without a day off, workers falling asleep on the production line during 12-hour shifts (sometimes 16 hours), forced overtime and dormitory rooms where 12 workers shared a cramped room.[17][18]

In August 2016, China Labor Watch published a report which stated that working conditions have not improved since 2014. The average worker at Pegatron's Shanghai factory racks up 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 put in.[19][20]

In September 2020, Employees in charge of recruitment of the subsidiary Seshuo Electronics (Kunshan) Co., Ltd.「世碩電子」 threw the employee ID of new employee on the ground, and the new employee bent over to pick it up. After the incident, a large number of employees left.[21]

In November 2020, Apple discovered that Pegatron was using student workers in factories in mainland China to suspend granting Pegatron new business. Apple also stated that it would not grant Pegatron any new business until Pegatron completes the rectification.[22]

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, the factory director took the lead in beating people, and many police officers came to the scene to suppress. Some people were beaten to the ground and their fate was unknown, and more than ten people were arrested, triggering a rights defense incident.[23][24][25]

See also

References
  1. "Listing Particulars" (PDF). Archived from the original (PDF) on 2010-11-27.
  2. "Pegatron Corp, 4938:TAI profile - FT.com". Financial Times. Retrieved 26 December 2016.
  3. "Unihan Corporation: Private Company Information - BusinessWeek".
  4. "Pegatron Corp. Who We Are". Archived from the original on 2013-01-31.
  5. "Pegatron Corp(4938:TT): Company Description- Businessweek". Archived from the original on 2012-10-13.
  6. "ASUS splits into three". PC Pro. 4 January 2008. Retrieved 1 April 2013.
  7. "ASUS pins future on small and inexpensive laptop". USA Today. 16 May 2008. Retrieved 1 April 2013.
  8. 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.
  9. "Asustek to spin off motherboard arm". Financial Times. 11 December 2009. Retrieved 1 April 2018.
  10. "The Rundown: Pegatron's Tesla Ambitions, Tech Sector Bonuses, and Cisco's New Software Center". topics.amcham.com.tw. Taiwan Topics. Retrieved 18 January 2021.
  11. ASUS FINALLY BIDS FAREWELL TO PEGATRON posted by Jeremy Hellstrom April 18, 2012
  12. "Listing Particulars" (PDF). Archived from the original (PDF) on 2010-11-27.
  13. "Pegatron Corp. EICC". Archived from the original on 2011-05-26. Retrieved 2011-05-30.
  14. "Pegatron Corp About PuRECSR". Archived from the original on 2011-09-12. Retrieved 2011-05-30.
  15. "PEGA D&E- About Us". Archived from the original on 2017-04-25. Retrieved 2011-05-27.
  16. "2009 Corporate Sustainability Report of Pegatron Group" (PDF). Archived from the original (PDF) on 2011-06-12. Retrieved 2011-05-30.
  17. British Broadcasting Corporation (18 December 2014). "Apple 'failing to protect Chinese factory workers'". British Broadcasting Corporation. London. Retrieved 22 December 2014.
  18. Brian, Chen (22 December 2014). "Apple iPhone factory working conditions exposed in documentary". The Age. Retrieved 22 December 2014.
  19. "Apple Making Big Profits but Chinese Worker's Wage on the Slide" (PDF). China Labor Watch. 23 August 2016. Retrieved 1 February 2018.
  20. "Apple is under fire for "excessive overtime" and illegal working conditions in another Chinese factory". Quartz. 25 August 2016. Retrieved 1 February 2018.
  21. {http://finance.ifeng.com/c/7zYSESc7IJw Kunshan Shishuo Electronics Factory roughly issued work permits, a large number of employees resigned Phoenix.com}
  22. %9C%E5%85%AC%E5%8F%B8%E6%9A%82%E5%81%9C%E7%BB%99%E4%BA%88%E5%92%8C%E7%A1%95 %E6%96%B0%E4%B8%9A%E5%8A%A1%EF%BC%8C%E5%9B%A0%E5%90%8E%E8%80%85%E8%BF%9D%E5 %8F%8D%E7%94%A8%E5%B7%A5%E8%A7%84%E5%AE%9A-11604919012 "Apple suspends granting Pegatron business because the latter violates employment regulations" Check |url= value (help).
  23. Yahoo News.tw. factory- Pegatron iPhone foundry Shanghai factory exploded protest-123900351.html "Thousands of people encircle the factory! Pegatron iPhone foundry Shanghai factory exploded in protest" Check |url= value (help). Yahoo News.tw. Retrieved 2020-12-20.
  24. Shuling, Zhang. "Thousands of people gathered for a labor dispute at Apple's foundry Shanghai Pegatron". CNA.com.tw. Retrieved 2020-12-20.
  25. Reporters Gu Xiaohua, Luo Ya. "Thousands of people from Shanghai Pegatron beg for salary, more than ten arrested". Epochtimes.com. Retrieved 2020-12-22.
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