Taiwanese Apple supplier Pegatron Corp. plans to invest up to Rp15 trillion (US$1.04 billion) to build a factory in Batam Island. The new factory to produce chips for Apple smart-phones in the country.

The Taiwan manufacturer made the pledge in a signed letter to the Indonesian government, in which it said the chips would be produced in partnership with Indonesian electronics company PT Sat Nusapersada Tbk (PTSN).

At the beginning, he said, Pegatron making household appliances with Sat Nusapersada at Batamindo Industrial Park Batam in this month. Pegatron has traditionally not made chips for smart-phones.