Pegatron to Invest up to $1 Billion in Indonesian iPhone Chip Factory - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Pegatron to Invest up to $1 Billion in Indonesian iPhone Chip Factory

by

Apple supplier Pegatron plans to invest up to $1 billion in an Indonesian factory to produce chips for Apple smartphones, an Indonesian ministry official said on Tuesday (via Reuters).

pegatron logo
The Taiwan manufacturer made the pledge in a signed letter to the Indonesian government, in which it said the chips would be produced in partnership with Indonesian electronics company PT Sat Nusapersada, according to Deputy Minister Warsito Ignatius.

Pegatron expects the investment to come somewhere between $695 million and $1 billion, although the variables influencing the exact amount have not been disclosed.

In December 2018, Apple was said to be looking to shift production of older iPhones to Pegatron in an effort to avoid losing billions in revenue as a result of its patent dispute with Qualcomm. That dispute has since been resolved, however rising trade tensions between the U.S. and China has put manufacturers in both countries on alert. Pegatron has assembly plants in China, which suggests its pledge of Indonesian investment could be a contingency plan.

According to today's report, the new Indonesian factory might also be used to produce MacBook components, although that operation "would not be in the short term," Ignatius told Reuters.

A DigiTimes rumor in May 2018 tipped Pegatron to pick up orders from Apple to produce a MacBook powered by an ARM processor, although the information it was based on may have been misconstrued with the Touch Bar on Apple's MacBook Pro, which is already powered by an ARM-based T1 chip as a companion processor. Apple said in 2017 that it had no plans for Macs powered solely by ARM chips, rather than Intel processors.

Top Rated Comments

89 months ago
Apple supplier Pegatron plans to invest up to $1 billion in an Indonesian factory to produce chips for Apple smartphones, an Indonesian ministry official said on Tuesday
Pegatron wouldn't need a billion if they were only doing assembly, which is what they do in their current business. So I assume they are actually making chips, as in Fabs.

But why ? And why Indonesian ?

They are partnering with a local company Sat Nusapersada, which is another assembler as well just like Pegatron and Foxconn.

This story doesn't make much sense to me.
----------------------------------------------------------------------------------------------------------

Edit: And so I decide to dig a little deeper.

The president of Pegatron ( In US's terms he would be CEO ) actually state in Feb / March they are not investing $1B in Indonesian. ( Make sense if you look at Pegatron's revenue and Cash Flow, $1B is not small amount of money )
They intent ( i.e Not confirmed ) to invest UP TO $300M. With its initial investment at $40M. And they are moving some assembly line outside of China to hedge against the trade war. They are also looking at many other options such as Vietnam and Thailand.

The $1B number is said to be oriented from an Indonesia government official in late 2018.

And none of the previous news and rumours or statements made anything about producing chips. Which is entirely a different business and require different level of technical knowledge and expertise.

I guess Reuter just want a story out for whatever reason.
Score: 3 Votes (Like | Disagree)

Popular Stories

imac video apple feature

Apple Released Yet Another New Product Today

Friday March 20, 2026 2:39 pm PDT by
Apple has unveiled a whopping nine new products so far this March, including an iPhone 17e, iPad Air models with the M4 chip, MacBook Air models with the M5 chip, MacBook Pro models with M5 Pro and M5 Max chips, the all-new MacBook Neo, an updated Studio Display, a higher-end Studio Display XDR, AirPods Max 2, and now the Nike Powerbeats Pro 2. iPhone 17e features the same overall design as...
iPhone 18 Pro Deep Red Feature

iPhone 18 Pro Launching Later This Year With These 12 New Features

Wednesday March 18, 2026 7:39 am PDT by
While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another six months or so, there are already plenty of rumors about the devices. It was initially reported that the iPhone 18 Pro models would have fully under-screen Face ID, with only a front camera visible in the top-left corner of the screen. However, the latest rumors indicate that only one Face ID component...
ios 26 4 pastel

iOS 26.4: Top 10 New Features Coming to Your iPhone

Friday March 20, 2026 2:44 pm PDT by
iOS 26.4 isn't the major update with new Siri features that we hoped for, but there are some useful quality of life improvements, and a little bit of fun with an AI playlist generator and new emoji characters. Playlist Playground - Apple Music has a Playlist Playground option that lets you generate playlists from text-based descriptions. You can include moods, feelings, activities, or...
Related Apple News: Iphone | Entertainment | Business | Local News | Reviews