Pegatron investing up to $1B to make Apple components in Indonesia

Indonesian deputy industry minister Warsito Ignatius says that Taiwan firm Pegatron has signed a letter of intent stating that the company will invest between $695 million and $1 billion in local factories to build Apple devices.

Following regional reports claiming Pegatron would begin manufacturing Apple devices in Indonesia, the company has reportedly signed a letter of intent with the local government to do so. Deputy Industry Minister Warsito Ignatius confirmed to Reuters that production will be done in partnership with Indonesian firm PT Sat Nusapersada.

Reuters reports that the factory will produce chips for Apple smartphones, but this is likely incorrect, as Pegatron is primarily a device assembler and has been performing that duty for Apple for over a decade. If the report is accurate, it isn't clear what chip manufacture the company would take over.

"The factory might also be used to produce MacBook components as well," said Deputy Minister Ignatius, "but it would not be in the short term."

Reports of Pegatron moving production to Indonesia first surfaced in December 2018. It followed concerns that the US/China trade dispute would result in costly tariffs.

7 Comments

racerhomie3 1264 comments · 7 Years

About 5 years ago

That is excellent.  has 355 suppliers in China. 250+ in Japan almost 60 in USA. That China number should spread out over Indonesia, Thailand, India,Bangladesh,Vietnam.

sns 1 comment · 5 Years

More wait by China in trade war, more businesses will find alternative to china manufacturing.. It is good news for many Asian countries. In a way it is good news for importing counties like US as more vendors means more bargain.. Now china is like monopoly and that is going to change by china behavior..

jbdragon 2312 comments · 10 Years

sns said:

More wait by China in trade war, more businesses will find alternative to china manufacturing.. It is good news for many Asian countries. In a way it is good news for importing counties like US as more vendors means more bargain.. Now china is like monopoly and that is going to change by china behavior..

Yep, and I hope China continue to hold out. All they are doing is hurting themselves more and more. Between the completely unfair trade and Tariffs China has against the U.S. and the massive IP theft, it's about time there ere other choices. As these company's see what's going on, maybe they start a move to these other countries. That will also help them get a growing middle class. China better watch out.

badmonk 1332 comments · 11 Years

The result of this trade war is that manufacturing jobs will leave China but they are not coming back to the good old MAGA US of A.

They are going to go to Indonesia, Vietnam, India, Malaysia, Bangladesh etc etc.

I am not sure who will win in this trade war...it maybe no one except the above countries.

SpamSandwich 32917 comments · 19 Years

Apple should push for a minimal manufacturing presence in China going forward.