Taiwan’s Pegatron commits $1 billion to make Apple’s chips

Apple

Pegatron, a Taiwanese chip manufacturer said it has committed itself into an agreement to invest $695 million to $1 billion in making Apple’s smartphone chips.

The chip maker said the factory will be located in Indonesia via a joint venture with an Indonesian electronics company, PT Sat Nusapersada.

Indonesia’s Deputy Minister Warsito Ignatius broke the news to Reuters that:

“The factory might also be used to produce MacBook components as well, but it would not be in the short term,”

The news is coming at a time when the US has placed a ban on the world’s largest telecoms company, Huawei.

Analysts who spoke to PageOne’s business correspondent said the choice of Indonesia supplier and Taiwan could be Apple’s strategy to reduce its reliance and exposure to China.