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

94 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

iPhone 18 Pro Deep Red Feature

iPhone 18 Pro Launching Next Month With These 12 New Features

Thursday August 6, 2026 7:03 am PDT by
It is now August, and that means the iPhone 18 Pro and iPhone 18 Pro Max are just a month away. The devices are expected to look similar to the iPhone 17 Pro and iPhone 17 Pro Max, but there will still be many year-over-year changes, with rumored features including a smaller Dynamic Island, 5G via satellite, and more. Apple is expected to unveil the iPhone 18 Pro, iPhone 18 Pro Max, and a...
AirPods Ultra Mock

'AirPods Ultra' to Launch as Soon as Next Month

Friday August 7, 2026 10:58 am PDT by
Apple has been planning to release AirPods with cameras as early as this year, according to Bloomberg's Mark Gurman. If so, they could be unveiled as soon as September alongside the iPhone 18 Pro models and the long-rumored foldable iPhone. The earbuds are expected to have a design similar to the AirPods Pro 3, but with tiny cameras. Given the AirPods with cameras will likely be more...
dopamine

iOS 26 Gets First Jailbreak Thanks to Dopamine

Friday August 7, 2026 1:56 pm PDT by
After 326 days, iOS 26 has received its first jailbreak, thanks to the developers behind the popular Dopamine jailbreak. Lars Fröder, better known as opa334, today released Dopamine 3.0, which adds support for a number of newer firmware versions, including iOS 26.0 and iOS 26.0.1 on devices with A12 or A13 chips. Another major addition in today's release is support for all devices running...