Amidst the trade war going between the United States and China, some Pegatron Apple production is being moved out of China as early as next month, according to a supply-chain report today. Pegatron is planning to build production capacity in India, Indonesia, and Vietnam.
Pegatron reportedly will start assembling Apple’s MacBook and iPad devices via PT Sat Nusapersada, a local manufacturer in Batam, Indonesia in June, according to an Indonesian-language report from DetikInet.
The local report suggests that Indonesia has been chosen over Vietnam thanks to a better supply of workers. Pegatron president SJ Liao seemingly confirmed the original report back in January. He stated that the company would have more to say later, and that exact plans would depend on the state of the trade war between the US and China.
Looking at the escalated conditions now, it certainly makes sense that Pegatron Apple production plans would be implemented as quickly as possible.
Pegatron is not the only key Apple supplier looking to assemble products outside China. Foxconn has confirmed its own plans to begin mass-production of iPhones in India later this year. Making iPhones in India would also help reduce the tariffs put up by the Indian Government over imported products and reduce the overall prices of Apple products in the country.