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Pegatron Eyes Texas Plant for Tesla Part Production

Apple recently put Pegatron on probation amid concerns over child labor.

Taiwan-based Pegatron has announced plans to build a manufacturing facility in El Paso, Texas.

The company, a key Apple supplier, will dedicate the plant to making automotive components for Tesla. 

Much of the deal remains preliminary and Pegatron remains tight-lipped on the investment, location and timing.

In November, the company said it was eyeing a new U.S. plant to better serve American clients.

The same month, Apple reportedly put Pegatron on probation amid concerns over child labor. 

The supplier misclassified employees in a Chinese student workers’ program so they could work nights and overtime. 

The tactic violated Apple’s supplier rules, but the consumer electronics giant also said Pegatron “went to extraordinary lengths” to cover up the violations.

The move into electric vehicles makes sense as Pegatron has previously indicated that it sees the EV market as a source of potential growth.

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