Apple supplier Pegatron denies reports that China is blocking shipments of its products


Apple supplier Pegatron has refuted stories in the media that claimed Chinese customs officials were delaying shipments to and from its factories in China as a result of a meeting between a Pegatron executive and United States House Speaker Nancy Pelosi (via DigiTimes).

The company said in a report to the Taiwan Stock Exchange that iPhone production at its China-based plants is proceeding as normal and shipments have not been disrupted.

In the wake of a meeting between Pegatron vice chairman Jason Cheng and House Minority Leader Nancy Pelosi on Wednesday, rumors surfaced that Pegatron was threatening to sue Pelosi for breach of contract. TSMC’s Morris Chang and Mark Liu, the chairman and founder, were allegedly in attendance.

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The Chinese government considers Taiwan a renegade province by the Chinese government, which views it as an independent nation, even though many Taiwanese people regard their self-governed island as an independent nation. Pelosi’s journey to Taiwan, on the other hand, has enraged the Chinese authorities.

China is now conducting live-fire military manoeuvres in and around the Taiwan Strait in response to the visit, with some planes and naval vessels reported to have violated the median line, an unofficial but once widely adhered-to border that separates Taiwan and China. On Friday, China’s media stated that its missiles flew over Taiwan as part of its latest exercises.

TSMC is the world’s most valuable semiconductor business and the only provider of Apple’s custom silicon chips, while Pegatron is Taiwan’s second-largest contract electronics manufacturer and iPhone assembler behind Foxconn. There are factories in China for all three companies.

Apple has been making efforts to diversify its supply chain outside of China in order to lessen its dependency on the country and mitigate the impact of geopolitical upheaval. Vietnam and, more recently, India have emerged as major locations for supply chain expansion and investment.

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