You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

This morning, Pegatron signed a letter of intent to announce that it will invest up to $1 billion dollars to make a factory in Indonesia, via Reuters.

The factory will make chips for Apple smartphones and may make components for MacBooks in the future.

Try Amazon Prime 30-Day Free Trial

Pegatron is partnering with local electronics firm PT Sat Nusapersada. It is unclear how long it will take for the Pegatron operations to get off the ground.

A Digitimes report previously claimed that Pegatron would make iPads and MacBooks in Indonesia from June.

We have seen major Apple supply chain partners explore production out of China in recent months as companies look to diversify in the wake of the US-China trade war.

Foxconn and Wistron are also expanding iPhone production operations in India at the moment, although this is motivated by the fact that Apple must pay a 30% tariff on imported iPhones. With local manufacturing, Apple can reduce the price of its devices significantly in the region.

FTC: We use income earning auto affiliate links. More.

HP Memorial Day Sale

About the Author