Reuters reports Apple supply partner Pegatron plans to invest up to $1 billion in an Indonesian chip factory to produce chips for use in the iPhone. An Indonesian ministry official shared the plans with Reuters.
Deputy Minister Warsito Ignatius told Reuters that Pegatron plans to assemble the phone chips in partnership with Indonesian electronics company PT Sat Nusapersada at a factory on the island of Batam.
He clarified by text message that the factory would “assemble the chips for Apple smartphones, while the raw components would be imported.”
“The factory might also be used to produce MacBook components as well, but it would not be in the short term,” Ignatius said.
Pegatron is said to be expecting the investment to fall somewhere in the $695 million to $1 billion range. However, the exact amount hasn’t been disclosed.
Pegatron – who has traditionally not manufactured chips for smartphones like the iPhone – declined to comment. Pt Sat Nusapersada and Apple also failed to respond to requests for immediate comment.
In May 2018, it was rumored that Pegatron would be producing an ARM-powered MacBook, although Apple had said in 2017 that it had no plans for an ARM-powered Mac.