iPhone chip manufacturing on its way to Indonesia

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iPhone 6s teardown
Pegatron will team up with an Indonesian manufacturer..
Photo: iFixit

Apple manufacturing partner Pegatron plans to invest up to $1 billion in a new iPhone chip plant in Indonesia.

The Taiwanese company outlined its plans in a letter of intent to the Indonesian government, according to a new report. Pegatron plans to work alongside local company PT San Nusapersada.

Pegatron has long been involved in the production of Apple devices. Cupertino is one of its biggest customers, and it seems the relationship will continue as Pegatron looks to invest big money in a new facility built specifically for the iPhone.

Pegatron heads to Indonesia

“Pegatron has signed a letter of intent stating it intends to invest 10 trillion to 15 trillion rupiah ($695 million to $1 billion) in an Indonesian factory to produce chips for Apple smartphones,” reads a Reuters report citing the Indonesia deputy industry minister.

The factory may also be used to produce MacBook components in the future, but for now, its sole purpose will be manufacturing iPhone components.

Pegatron is one of a number of Apple partners exploring new manufacturing opportunities outside of China as its trade war with the U.S. rages on. Foxconn and Wistron have expanded their efforts in India, where they are now assembling the iPhone 6s.

It’s not yet clear when Pegatron’s new facility might open its doors.