Apple Supplier Pegatron Denies Reports of China Blocking Shipments

Apple supplier Pegatron has denied media reports claiming shipments to and from its factories in China were being held for scrutiny by Chinese customs officials, following a Pegatron executive's meeting with U.S. House Speaker Nancy Pelosi (via DigiTimes).

pegatron logo small
In a filing with the Taiwan Stock Exchange, the company indicated that iPhone production at its China-based sites is continuing as normal and shipments have not been affected.

The reports appeared after Pegatron vice chairman Jason Cheng met with Pelosi on Wednesday at a lunch hosted by Taiwan President Tsai Ing-wen. TSMC founder Morris Chang and chairman Mark Liu were also reportedly among the guests.

Pelosi's visit to Taiwan has angered the Chinese government, which sees the island as a breakaway province that will eventually be part of the country, despite many Taiwanese people considering their self-ruled island to be a separate nation.

In response to the visit, China is currently conducting live-fire military drills in and around the Taiwan strait, with some aircraft and naval vessels reported to have crossed the median line, an unofficial but once largely adhered-to border that separates Taiwan and China. Chinese media on Friday reported that its missiles flew over Taiwan during its latest drills.

Pegatron is the second largest Taiwanese contract electronics manufacturer and ‌iPhone‌ assembler behind Foxconn, while TSMC is the sole supplier of Apple's custom silicon chips and the world's most valuable semiconductor company. All three firms operate plants in China.

Apple has been trying to diversify its supply chain outside of China to reduce its reliance on the country and mitigate the impact of geopolitical unrest, with Vietnam, and more recently India, emerging as important locations for supply chain expansion and investment.

Update: Nikkei reports that Apple on Friday asked suppliers to ensure that shipments from Taiwan to China strictly comply with Chinese customs regulations, which state that Taiwanese-made parts and components must be labeled as being made either in "Taiwan, China" or "Chinese Taipei," language that indicates the island is part of China.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

Apple Intelligence General Feature

Apple Intelligence Features Not Coming to European Union at Launch Due to DMA

Friday June 21, 2024 9:44 am PDT by
Apple today said that European customers will not get access to the Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing features that are coming to the iPhone, iPad, and Mac this September due to regulatory issues related to the Digital Markets Act. In a statement to Financial Times, Apple said that there will be a delay as it works to figure out how to make the new...
iOS 18 on iPhone Feature

Everything New in iOS 18 Beta 2

Monday June 24, 2024 12:52 pm PDT by
Apple today released the second betas of iOS 18 and iPadOS 18 to developers, and the software adds support for new features that Apple is working on, plus it tweaks some of the interface changes that have been made in the updates. Apple will refine iOS 18 over the course of the next few months, with multiple changes and refinements expected from now until September. We've highlighted...
Apple WWDC24 Apple Intelligence hero 240610

Apple Explains iPhone 15 Pro Requirement for Apple Intelligence

Wednesday June 19, 2024 4:48 am PDT by
With iOS 18, iPadOS 18, and macOS Sequoia, Apple is introducing a new personalized AI experience called Apple Intelligence that uses on-device, generative large-language models to enhance the user experience across iPhone, iPad, and Mac. These new AI features require Apple's latest iPhone 15 Pro and iPhone 15 Pro Max models to work, while only Macs and iPads with M1 or later chips will...
amazon echo dot

Amazon Could Charge Up to $10/Month for Alexa

Friday June 21, 2024 2:55 pm PDT by
Apple competitor Amazon is working on a revamp of its Alexa assistant, and the new version could cost up to $10 per month, according to a report from Reuters. The upcoming version of Alexa will support conversational generative AI, and Amazon is planning for two tiers of service. There will be a free tier and a second, premium tier that is priced at $5 at a minimum, with Amazon considering...
top stories 22jun2024

Top Stories: Apple Watch X Rumors, New Final Cut App for iPhone, and More

Saturday June 22, 2024 6:00 am PDT by
The avalanche of news coming out of WWDC earlier this month is finally starting to slow, but that doesn't mean there wasn't still lots to talk about in Apple news and rumors this week. This week saw some additional rumors about the upcoming Apple Watch models, the release of major Final Cut Pro updates, the launch of Apple's annual Back to School promo in the U.S. and Canada, new...

Top Rated Comments

DHagan4755 Avatar
25 months ago
If I were running Apple I would move everything out of China. Rewarding a communist authoritarian regime like China only emboldens China.
Score: 34 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
25 months ago
Get out of China ?? Apple, please. Enough is enough!
Score: 26 Votes (Like | Disagree)
Colstan Avatar
25 months ago
Whether you agree with Speaker Pelosi visiting Taiwan or not, here is the context for why this is a big deal to China and U.S. relations with them.

For the Center for Strategic and International Studies, Michael J. Green and Bonnie S. Glaser, explain the United States' "One China" policy:

When the United States moved to recognize the People’s Republic of China (PRC) and de-recognize the Republic of China (ROC) in 1979, the United States stated that the government of the People’s Republic of China was "the sole legal Government of China." Sole, meaning the PRC was and is the only China, with no consideration of the ROC as a separate sovereign entity.

The United States did not, however, give in to Chinese demands that it recognize Chinese sovereignty over Taiwan (which is the name preferred by the United States since it opted to de-recognize the ROC). Instead, Washington acknowledged the Chinese position that Taiwan was part of China. For geopolitical reasons, both the United States and the PRC were willing to go forward with diplomatic recognition despite their differences on this matter. When China attempted to change the Chinese text from the original acknowledge to recognize, Deputy Secretary of State Warren Christopher told a Senate hearing questioner, "[W]e regard the English text as being the binding text. We regard the word ‘acknowledge’ as being the word that is determinative for the U.S." In the August 17, 1982, U.S.-China Communique, the United States went one step further, stating that it had no intention of pursuing a policy of "two Chinas" or "one China, one Taiwan."

To this day, the U.S. "one China" position stands: the United States recognizes the PRC as the sole legal government of China but only acknowledges the Chinese position that Taiwan is part of China. Thus, the United States maintains formal relations with the PRC and has unofficial relations with Taiwan. The "one China" policy has subsequently been reaffirmed by every new incoming U.S. administration. The existence of this understanding has enabled the preservation of stability in the Taiwan Strait, allowing both Taiwan and mainland China to pursue their extraordinary political and socioeconomic transitions in relative peace.
Score: 14 Votes (Like | Disagree)
Corsig Avatar
25 months ago
It’s time to get out of China. What more is it going to take?
Score: 13 Votes (Like | Disagree)
citysnaps Avatar
25 months ago

Make America great again?

May I ask, why Apple isn't manufacturing their stuff in the US of A only? Ah, of course, the salary and work is much more expensive in their homeland. So, what to do... what to do? Poor Tim Cook. :eek:;)
The manufacturing infrastructure in the United States simply does not exist. To the extent that Apple manufactures roughly 600,000 iPhones every day of the year (on the average) with outstanding workmanship/quality and superb supply chain management. And just as importantly, can ramp that quantity up or down on a moments notice when needed (iPhone launches, Christmas, etc).

That infrastructure exists in China due to the billions/trillions of dollars of subsidized investment from the Chinese government over many decades.
Score: 11 Votes (Like | Disagree)
one more Avatar
25 months ago

Scary how over in China people seem to be eager to start a conflict.
Who says they want to start a conflict? People in China ≠ Chinese government, same goes for Russia, the US and most other countries around the world.
Score: 9 Votes (Like | Disagree)