Pegatron, a Taiwanese electronics contract manuafacturer, which handles around 30% of Apple’s assembly orders, said on Sunday it was planning to build up production capacity in Indonesia, Vietnam, and India, underscoring that another major Taiwanese OEM player is mulling over a move to reduce its reliance on China in the middle of an on-going trade war that drives up the cost of making in China.
Liao Syh-jang, chief executive officer of Pegatron Corp, said that whether the US will decide to go ahead with new tariffs on March 1 will be a key impact on the speed of the company’s further diversification.
However, the company didn’t elaborate if it’s moving iPhone production to countries outside China as well.
This follows what Apple’s largest manufacturer Hon Hai Precision Industry Co, also known as Foxconn, said over the weekend that it’s investing more than $200 million in India and Vietnam, a new step it’s taken to reduce reliance on the world’s factory.
Editor: Ben Jiang