Pegatron shifts from China to Indonesia as trade war bitesLeading iPhone assembler accelerates diversification strategy
LAULY LI, Nikkei staff writer
DECEMBER 05, 2018 19:02 JST
https://asia.nikkei.com/Economy/Trade-War/Pegatron-shifts-from-China-to-Indonesia-as-trade-war-bitesTAIPEI -- Key iPhone assembler Pegatron has chosen Indonesia for its first diversification of manufacturing away from China in the wake of costly trade tensions between Washington and Beijing.
The Taiwan-based electronics manufacturer is preparing to shift production of non-iPhone products hit by U.S. tariffs on Chinese exports to a rented factory on Indonesia's Batam Island within the next six months.
A source with knowledge of the plan said the products -- which include set-top boxes and other smart devices -- accounted for close to $1 billion in annual revenue. Investment would start within the month, with full production expected by the middle of 2019, the person said.
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