Pegatron is allegedly set to start assembling MacBooks and iPads in Indonesia next month

Contract manufacturer Pegatron is allegedly set to soon move iPad and MacBook manufacturing out of China amid an escalating trade war between the US and China.

Taiwanese trade publication DigiTimes reports, citing an Indonesian-language story from DetikInet, that Pegatron will be assembling some MacBook and iPad models in cooperation with local manufacturer PT Sat Nusapersada.

The companies will reportedly kick off Apple device production next month in Batam, Indonesia, where Pegatron has invested to the tune of $300 million to refurbish two plants.

Abidin Hasibuan, CEO of PT Sat Nusapersada, did not deny that the company would start assembling products in June. The CEO did not specify the client or clients it would be working for, but said the products would be shipped to the US, according to the report.

The cited report does not state for a fact that Pegatron and PT Sat Nusapersada will be assembling Apple products in the country, but Apple is Pegatron’s #1 client so these Indonesian orders are almost certainly from the Cupertino company.

Although the US temporarily eased restrictions imposed last week on China’s Huawei, Apple’s profit will drop by almost 30 percent should the Chinese government ban its products, Goldman Sachs estimated, resulting in a reduction in net income by over $15 billion annually.

Meanwhile, Huawei CEO Ren Zhengfei said in an interview with Chinese state TV on Tuesday that he admires Apple and buys his family iPhones when they are not in China.

“iPhone has a good ecosystem and when my family are abroad, I still buy them iPhones, so one can’t narrowly think love for Huawei should mean loving Huawei phones,” he said, according to The South China Morning Post.