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Pegatron eyes up to $1 billion Indonesia investment to assemble Apple phone chips: the minister

An Apple Store employee walks past an illustration of iPhones at the new Apple Carnegie Library during the grand opening and media preview in Washington, USA, May 9, 2019. REUTERS/Clodagh Kilcoyne

JAKARTA (Reuters) – the taiwanese Pegatron has signed a letter of intent stating that it is planning to invest 10-15 trillion rupiah ($695 million to $1 billion) in an Indonesian factory to assemble “chips for Apple smartphones”, the indonesian deputy industry minister said on Tuesday.

Pegatron plans to assemble the phone chips, in cooperation with the Indonesian electronics company PT Sat Nusapersada in a factory on the island of Batam, Vice-Minister Warsito Ignatius told Reuters.

He had earlier said that the production of chips, but later clarified by the text message that the factory would “assemble the chips for Apple smartphones, while the raw components would be entered.”

“The plant can also be used for the production of MacBook parts as well, but it would not be in the short term,” Ignatius said.

Pegatron declined to comment. Pt Sat Nusapersada, and Apple has not responded to requests for immediate response.

Pegatron is already preparing to start the production of household appliances in partnership Sat Nusapersada on Batam is Batamindo Industrial Park, a park executive told Reuters this month.

Pegatron has not traditionally made of chips for smartphones.

Reporting by Cindy Silviana; editing by Tom Hogue and Jason Neely

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