May 29, 2019 12:15:00

iPhone maker starts producing iPhone chips in Indonesia for 100 billion yen, continuing to move out of China

by

Tyler Lastovich

Pegatron, a Taiwanese manufacturer that has assembled Apple products such as the iPhone, will start producing chips for the iPhone at its partner plant in Indonesia. The investment amount for chip production will be 10 trillion to 15 trillion Rp (about 76 billion yen to about 114 billion yen).

Pegatron eyes up to $ 1 billion Indonesia investment to assemble Apple phone chips: deputy minister-Reuters
https://www.reuters.com/article/us-indonesia-pegatron-apple/pegatron-eyes-spending-up-to-1-billion-in-indonesia-to-make-chips-for-apple-official- idUSKCN1SY0TK

Apple supplier Pegatron announces it will invest up to $ 1 bn to build iPhone chips in Indonesia-9to5Mac
https://9to5mac.com/2019/05/28/apple-pegatron-indonesia/

Pegatron shifts from China to Indonesia as trade war bites-Nikkei Asian Review
https://asia.nikkei.com/Economy/Trade-war/Pegatron-shifts-from-China-to-Indonesia-as-trade-war-bites

Pegatron is a Taiwanese electronic equipment manufacturer known to have been responsible for manufacturing Apple products along with Foxconn, and has so far assembled iPhone 8 and iPhone XR mainly at production bases in China. The Pegatron invests 10 trillion to 15 trillion rupiah (approximately 75.8 billion yen to approximately 113.9 billion yen) in partnership with PT Sat Nusapersada, which has a factory in an industrial park on Batam Island , Indonesia, to produce chips for the iPhone That it was decided to start the According to Reuters, the information is from Ignatius Walshitt of the Indonesian Ministry of Industry.

by photocreo

Although Pegatron announced in December 2018 that it would establish a new production base in Indonesia on the grounds of “the soaring labor cost in China” etc., it has clarified what products it will specifically produce in the past did not. Also, Pegatron has been focusing on the assembly of the iPhone, and it is the first time to produce a core chip. The background of this announcement is believed to be the intensifying “US-China Technology Cold War”.

Whichever wins the 'US-China Technology Cold War'-GIGAZINE

Pegatron is not the first move to move electronics manufacturing sites from China to Asian countries. The Taiwanese electronics maker Foxconn , famous as a major iPhone manufacturer, announced in April 2019 that it will start producing iPhone in India, ahead of Pegatron.

Foxconn Manufacturing iPhone Announces 'Starting Manufacturing iPhone in India'-GIGAZINE

Similarly, Taiwan's electronics manufacturer Wistron , which is the predecessor of Acer 's product design and manufacturing department, has been manufacturing iPhone 7 in India from April 2019.

The United States Trade Representative (USTR) has announced that as early as June 2019, it will add up to a 25% additional tariff on electronic devices such as iPhones imported from China, and will produce electronic devices such as smartphones The move to relocate bases from China is expected to continue for the foreseeable future.