The combined capital expenditure of the six major electronics foundries will exceed $43.2 billion this year, up 21.5 per cent year-on-year!

March 17 news, according to Taiwan media reports, with the expansion of AI, automotive and other applications demand, the major electronics foundries are actively sprinting high value-added product lines, while responding to customer demand for multiple production bases, continued to invest in global expansion of factories in order to grasp the market business opportunities. 2024 Hon Hai, Pegatron, Quanta, Wistron, Compal and Inventec and other six major electronics foundries, the size of the combined capital expenditure will break through the NT$190 billion (about RMB43.24 billion), up 21.5% from last year's NT$156.4 billion.

Specifically, in terms of Hon Hai, a leading electronics foundry, the capital expenditure in 2023 will be NT$111.7 billion, a 14% growth from 2022. Hon Hai expects that the capital expenditure will continue to increase this year and grow at a rate higher than that of last year, for the fourth consecutive year of growth.

PEGATRON estimates that this year's capital expenditure will reach US$500 million (about NT$15.8 billion), an increase of about 40% to 60% over last year's US$300 million to US$350 million, mainly targeting AI, automotive, and 5G plant construction and equipment investment.

Quanta's capital expenditures this year, compared with last year's NT$8.8 billion increase, is estimated to rise to NT$10 billion, equivalent to a growth of about 13.6%, to return to the 10 billion mark, in order to cope with the demand for expansion of factories in Europe, the United States, Thailand and Mexico.

Wistron's capital expenditure last year was nearly NT$13 billion, this year's capital expenditure is expected to be NT$14 billion, an annual increase of about 7.7%, of which 50% for the expansion of production in Taiwan, China and the new office building, 30% for the expansion of factories in Vietnam and Mexico and other places in the demand for other areas, including mainland China's existing production capacity expansion expenditures, the U.S. California, the new capacity of trial production.

Compal's capital expenditure last year was about NT$7.17 billion, Compal expects that if the group does not include the establishment of a new headquarters expenditure, the group's capital expenditure this year is about NT$7 billion -8 billion, and the scale of the relevant expenditures in previous years is similar. In the past, the centre of gravity was mainly in the expansion of factories in Vietnam, this year focusing on Indonesia and Europe.

Inventec's overseas factory expansion is also in full swing, in order to continue to expand the overseas layout, this year's capital expenditures will be NT$4.7 billion from last year's NT$4.7 billion, a substantial upward adjustment to US$400 million to US$450 million (about NT$12.6 billion to NT$14.2 billion), equivalent to a doubling of the growth, mainly in Mexico, the Czech Republic, and Thailand and other places to expand the demand.