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.

Top Rated Comments

DHagan4755 Avatar
2 weeks 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
2 weeks ago
Get out of China ?? Apple, please. Enough is enough!
Score: 25 Votes (Like | Disagree)
Colstan Avatar
2 weeks 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: 13 Votes (Like | Disagree)
Corsig Avatar
2 weeks ago
It’s time to get out of China. What more is it going to take?
Score: 13 Votes (Like | Disagree)
citysnaps Avatar
2 weeks 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: 10 Votes (Like | Disagree)
one more Avatar
2 weeks 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)

Related Stories

ipad air 5 colors

Apple Reportedly Moving Some iPad Production From China to Vietnam

Wednesday June 1, 2022 5:04 am PDT by
Apple is shifting some iPad production from China to Vietnam for the first time, Nikkei Asia reports. Currently, the overwhelming majority of the iPad's supply chain is concentrated in China. Apple has been reported to be interested in moving at least some iPad production to Vietnam since January 2021, but supply chain issues over the past year are said to have delayed the move. Now, the...
iPhone 14 Lineup Feature Red

Major iPhone Supplier Planning Further Push Into India as Apple Looks to Diversify Supply Chain

Thursday August 4, 2022 6:43 am PDT by
Foxconn, Apple's largest supplier, is looking to further expand its presence in India with the opening of a new production facility within an existing factory in the country to produce the iPhone, The Economic Times reports. Foxconn is reportedly set to begin production in the new building in just a few months after ramping up hiring in the country in recent weeks, according to the report....
iPhone 14 Pro Lineup Feature Purple

China Places iPhone Production Site Under Seven Day Lockdown Ahead of iPhone 14 Mass Production

Monday July 25, 2022 4:13 am PDT by
An iPhone production plant in the southern Chinese city of Shenzhen is being forced into a seven-day "closed loop" lockdown by Chinese authorities, alongside 100 other companies in an attempt to curb COVID-19 infections, Bloomberg reports. The "closed loop" system will mean only employees who live on-site will be able to work, blocking access from the outside and largely prohibiting anyone...
Apple iPhone 13 colors lineup 2022

Apple Expands Mobile Market Share in China on Strong iPhone 13 Demand

Wednesday July 20, 2022 3:36 am PDT by
Apple has expanded its smartphone market share in China on the back of strong iPhone 13 sales, despite a slowdown in the Chinese mobile market as a whole this year. According to Strategy Analytics, 14 million smartphones were sold during the country's annual "6.18" online shopping festival in June, down 25% year on year. Chinese brands including Xiaomi, Oppo and Vivo all experienced...
chinafoxconn

Apple Supplier Ramps Up Hiring for iPhone 14 Production Amid Delay Fears

Tuesday May 3, 2022 7:07 am PDT by
Apple has asked Foxconn to start recruiting workers to assemble iPhone 14 models earlier than usual amid fears that China's lockdowns could lead to short supply or delays later in the year, United Daily News reports. Foxconn, Apple's main assembly partner, has reportedly launched a large recruitment drive for its factory in Zhengzhou this week, despite the season normally being off-peak for...
iPhone 14 Pro Lineup Feature Silver

iPhone 14 Suppliers Reportedly Feeling Uncertain About Demand Ahead of Launch

Thursday August 11, 2022 6:51 am PDT by
Suppliers for the upcoming iPhone 14 reportedly feel uncertain about how high demand will be for Apple's upcoming flagship lineup, according to supply chain sources speaking to DigiTimes. A paywalled preview of a full story set to be published tomorrow says "uncertainty remains about demand for the new models between the end of the fourth quarter and the beginning of first-quarter 2023."...
tsmc arizona

Apple Chip Supplier TSMC Celebrates Arizona Factory Nearing Completion

Friday July 29, 2022 3:18 am PDT by
Apple chip supplier TSMC recently hosted a topping-out ceremony for its new fabrication plant in Phoenix, Arizona, DigiTimes reports. TSMC's topping-out ceremony in Arizona The $12 billion factory will be the first of its kind to mass-produce 5nm chips in the United States. All of Apple's latest chips, dating back to the A14 Bionic and M1 chip, are fabricated with a 5nm process. In a post on...
macbook pro 4

MacBook Pro Assemblers in China Unlikely to Return to Pre-Lockdown Production Levels Before July

Thursday May 12, 2022 5:11 am PDT by
Apple's MacBook Pro assemblers in China are unlikely to return to pre-lockdown production levels until July because of insufficient manpower and logistical problems, based on the latest industry report. Notebook manufacturers in major cities in eastern China have been resuming operations following the recent gradual easing of lockdowns, but those in Shanghai are currently only operating at...

Popular Stories

airpods pro black background

AirPods Pro 2: Five New Features and Improvements to Expect

Sunday August 14, 2022 3:28 pm PDT by
Apple's second-generation AirPods Pro are finally nearing launch, with a release expected later this year. If you are considering upgrading to the new AirPods Pro once they are released, keep reading for a list of five new features to expect. In addition to all-new features, the second-generation AirPods Pro will likely adopt some features added to the standard AirPods last year. H2 Chip ...
10th Generation iPad Render

10th-Generation iPad With Major Design Changes Reportedly in Production Ahead of September Launch

Monday August 15, 2022 8:02 pm PDT by
Apple's rumored 10th-generation iPad is currently in production and will feature "major" design changes, according to a report from Taiwanese website DigiTimes. A mockup of the potential 10th-generation iPad design by Renders By Shailesh The report did not provide any specific details about the 10th-generation iPad's new design, but rumors suggest the device will feature a larger 10.5-inch...
ios 16 lock screen feature2

Apple Seeds Sixth Betas of iOS 16 and iPadOS 16 to Developers [Update: Public Beta Available]

Monday August 15, 2022 10:04 am PDT by
Apple today seeded the sixth betas of upcoming iOS 16 and iPadOS 16 updates to developers for testing purposes, with the updates coming a week after Apple released the fifth developer betas. Registered developers can download the iOS and iPadOS 16 profiles from the Apple Developer Center, and once installed, the betas will be available over the air. iOS 16 introduces a revamped Lock...
iPhone 14 Dummies 1 Feature

Everything Rumored for Apple's September Event: iPhone 14, Apple Watch Pro and More

Friday August 12, 2022 2:34 pm PDT by
There's just about a month to go until Apple holds its annual September event focusing on new iPhone and Apple Watch models. We thought we'd take a quick look at everything that's rumored for Apple's September event to give MacRumors readers a rundown on what to expect when the first fall event rolls around. iPhone 14 The iPhone 14 can probably be described more as an "iPhone 13S" because...
apple watch se

Apple Watch SE vs. Apple Watch Series 8: New Features to Expect If You've Waited to Upgrade

Monday August 15, 2022 2:44 am PDT by
The Apple Watch SE was announced in September 2020 and has been a popular Apple Watch model for customers looking for their first smartwatch or an affordable Apple Watch. Apple Watch SE customers may be wondering, however, what's in store for them with the upcoming Apple Watch Series 8 and what new features they can expect. Continue reading to find out. Apple Watch SE vs. Apple Watch Series ...
Apple Watch Series 3 v 8 1

Apple Watch Series 3 vs. Apple Watch Series 8: 20 Major New Features and Changes for Customers Upgrading

Tuesday August 16, 2022 6:52 am PDT by
It's crazy to think about, but next month will mark five years since Apple announced the Apple Watch Series 3. Despite being a severely antiquated smartwatch, the Series 3 has remained at the bottom of Apple's lineup for $199. Suppose you're still holding on to your Apple Watch Series 3. In that case, this article will list all the major new features and changes you'll get if you decide to...
iPhone 14 Pro Lineup Feature Purple

Apple Planning to Hold iPhone 14 Event on September 7

Wednesday August 17, 2022 9:51 am PDT by
Apple is aiming to hold its first fall event on Wednesday, September 7, reports Bloomberg's Mark Gurman. The event will focus on the iPhone 14 models and the Apple Watch Series 8. The standard iPhone 14 models are expected to get few changes, but the iPhone 14 Pro models will include updated camera technology, the removal of the notch in favor of a pill-shaped and hole-punch cutout, an A16...