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

ksec Avatar
86 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

iOS 26

iOS 26.4 and iOS 27 Features Revealed in New Leak

Friday December 12, 2025 10:56 am PST by
Macworld's Filipe Espósito today revealed a handful of features that Apple is allegedly planning for iOS 26.4, iOS 27, and even iOS 28. The report said the features are referenced within the code for a leaked internal build of iOS 26 that is not meant to be seen by the public. However, it appears that Espósito and/or his sources managed to gain access to it, providing us with a sneak peek...
apple beta 26 lineup

Apple Leak Confirms Work on Foldable iPhone, AirTag 2, and Dozens More Devices

Monday December 15, 2025 2:05 pm PST by
Last week, details about unreleased Apple devices and future iOS features were shared by Macworld. This week, we learned where the information came from, plus we have more findings from the leak. As it turns out, an Apple prototype device running an early build of iOS 26 was sold, and the person who bought it shared the software. The OS has a version number of 23A5234w, and the first...
Apple Foldable Thumb

Leak Reveals Foldable iPhone Details

Monday December 15, 2025 9:09 am PST by
The first foldable iPhone will feature a series of design and hardware firsts for Apple, according to details shared by the Weibo leaker known as Digital Chat Station. According to a new post, via machine translation, Apple is developing what the leaker describes as a "wide foldable" device, a term used to refer to a horizontally oriented, book-style foldable with a large internal display....
Apple Logo Top Half

Early iOS 26 Software Leak Uncovers Dozens of Upcoming Apple Features

Monday December 15, 2025 3:05 pm PST by
Software from an iPhone prototype running an early build of iOS 26 leaked last week, giving us a glimpse at future Apple devices and iOS features. We recapped device codenames in our prior article, and now we have a list of some of the most notable feature flags that were found in the software code. In some cases, it's obvious what the feature flags are referring to, while some are more...
iOS 26

Apple Releases iOS 26.2 With Alarms for Reminders, Lock Screen Changes, Enhanced Safety Alerts and More

Friday December 12, 2025 10:10 am PST by
Apple today released iOS 26.2, the second major update to the iOS 26 operating system that came out in September, iOS 26.2 comes a little over a month after iOS 26.1 launched. ‌iOS 26‌.2 is compatible with the ‌iPhone‌ 11 series and later, as well as the second-generation ‌iPhone‌ SE. The new software can be downloaded on eligible iPhones over-the-air by going to Settings >...
iOS 26

iOS 26.2 Coming Soon With These 8 New Features on Your iPhone

Thursday December 11, 2025 8:49 am PST by
Apple seeded the second iOS 26.2 Release Candidate to developers earlier this week, meaning the update will be released to the general public very soon. Apple confirmed iOS 26.2 would be released in December, but it did not provide a specific date. We expect the update to be released by early next week. iOS 26.2 includes a handful of new features and changes on the iPhone, such as a new...
macOS Tahoe 26 Thumb

Apple Releases macOS Tahoe 26.2 With Edge Light

Friday December 12, 2025 10:08 am PST by
Apple today released macOS Tahoe 26.2, the second major update to the macOS Tahoe operating system that came out in September. macOS Tahoe 26.2 comes five weeks after Apple released macOS Tahoe 26.1. Mac users can download the macOS Tahoe update by using the Software Update section of System Settings. macOS Tahoe 26.2 includes Edge Light, a feature that illuminates your face with soft...
airpods max 2024 colors

AirPods Max 2 Likely to Offer These 10 New Features

Monday December 15, 2025 7:41 am PST by
Apple released the AirPods Max on December 15, 2020, meaning the over-ear headphones launched five years ago today. While the AirPods Max were updated with a USB-C port and new color options last year, followed by support for lossless audio and ultra-low latency audio this year, the headphones lack some of the features that have been introduced for newer generations of the regular AirPods and the ...