Pegatron to Invest Up to $1 Billion On Indonesian Factory to Assemble Chips for Apple

Pegatron is planning to invest up to $1 billion on a factory in Indonesia that will assemble chips for Apple's iPhone, reports Reuters.

Taiwan’s Pegatron has signed a letter of intent stating it intends to invest 10-15 trillion rupiah ($695 million to $1 billion) in an Indonesian factory to assemble “chips for Apple smartphones”, Indonesia’s deputy industry minister said on Tuesday.

Deputy Minister Warsito Ignatius told the site that Pegatron will assemble chips in partnership with local electronics company PT Sat Nusapersada at a factory on the island of Batam.


They will "assemble the chips for Apple smartphones, while the raw components would be imported," said Ignatius. “The factory might also be used to produce MacBook components as well, but it would not be in the short term,” he added.

It's possible that rising trade tensions between the U.S. and China have led Pegatron to look outside of China for the new plant.

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