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Trade war

Pegatron shifts from China to Indonesia as trade war bites

Leading iPhone assembler accelerates diversification strategy

Pegatron Chairman Tung Tzu-hsien recently said the company also aims to expand its production capacity in Taiwan. (Photo by Ken Kobayashi)

TAIPEI -- 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.

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