Pegatron Chairman Says AI Push Won't Stall
Tung Tzu-hsien said US AI development is unlikely to be halted despite Democrats winning Congress in the midterm elections.
Updated on Nov. 4, 2026 in Artificial Intelligence
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Pegatron chairman Tung Tzu-hsien said AI development in the United States would not be halted by Democrats winning the midterms. Market concerns had arisen that US AI data centers under construction could be affected after the Democratic Party captured the Senate and Congress.
Why it matters
Investors had worried that a shift in Washington could slow the buildout of AI data centers. Tung's remarks suggest the sector's momentum may outlast the political change, though local opposition remains a factor.
Texas natural gas power costs little more than NT$1 per kilowatt-hour, according to figures cited by Tung, which is more than half cheaper than importing liquefied natural gas. Tung did not provide independent verification of these cost comparisons.
The players
Tung Tzu-hsien
Chairman of Pegatron, the Taiwan-based electronics manufacturer that makes devices and components for global technology brands.
The details
Tung said local practices could be adjusted or negotiated according to public opinion, and he suggested short sellers might be using post-election pessimism to push down market prices. He framed AI as central to US national strength, which he cited as the reason overall development is unlikely to stop.
Timeline
November 3, 2026: Democrats captured the US Senate and Congress in the midterm elections.
November 4, 2026: Tung spoke at a Taipei event dismissing AI worries.
Roadmap
Cheap natural gas in Texas, which the US has in abundance as the largest oil and gas producer, underpins the economics of AI data center expansion. Canada, the fourth-largest oil producer, sits within the same North American energy base that supports this buildout.
For data centers, cheaper Texas gas power lowers operating costs, which can shape where new AI infrastructure gets built. Data centers employ relatively few workers because their operations are highly automated, so local job gains from new facilities may be limited.
The takeaway
Political change does not automatically stop technology buildouts, but energy costs and local public opinion can shape where and how quickly they proceed. Watch both power pricing and permitting decisions when judging the sector's direction.
Further reading
Explore more AI coverage for context on how the sector is evolving.
Source note: This article includes information reported by Liberty Times Net.
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