Amid concerns over the US-China trade war, Taiwanese Pegatron, one of Apple iPhone assemblers, recently announced that the company will establish a 100% subsidiary in Vietnam and a new factory to manufacture electronics devices for US$150 million, the Central News Agency reported on February 17. The company is yet to finalize the location of the new plant in Vietnam and what to manufacture there and for whom.
Besides Vietnam, the company has also revealed its plan to move some of its manufacturing bases to other Southeast Asian region, including capacity expansion of its first Southeast Asian factory in Batam, Indonesia. Networking and communications products manufactured in Batam contributed 61% of Pegatron’s revenue as of the third quarter of 2019, totaling US$11.8 billion. Other iPhone assemblers, Foxconn and Wistron, also set up their new iPhone assembly lines in India last year.