Pegatron chairman optimistic as U.S.-China tensions ease

TAIPEI (TVBS News) — Pegatron Corp. Chairman Tung Tzu-hsien commented on Wednesday (Nov. 15) that the easing of U.S.-China tensions, possibly reestablishing communication mechanisms, is a significant development.

Tung acknowledged that the state of the world economy and the status of orders are difficult to predict. However, he is optimistic about the U.S. finishing its interest rate hike and the phenomena of inventory destocking.

Commenting on the ongoing Asia-Pacific Economic Co-operation (APEC) meeting in San Francisco, Tung said: "It now appears that important leaders are attending the summit, and have arranged to meet and communicate. This should be beneficial for relaxing global political and military tensions."

As for the economic outlook, Tung responded: "If the industry is no longer affected by unexpected war and global turmoil, it has cleared its inventory very efficiently in the past year."

Regarding the status of Pegatron's orders, Tung stated that it requires patience, and used a metaphor of restoring a once frail body, indicating uncertain visibility for orders in 2024.

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