Pegatron is partnering with Indonesia’s PT Sat Nusapersada to produce chips for Apple smartphones.

According to a statement by Indonesia’s deputy industry minister, Warsito Ignatius, Pegatron, a Taiwanese electronics company has signed a letter of intent stating it aims to invest $695 million to $1 billion (10 trillion to 15 trillion rupiah) in an Indonesian factory which will produce chips for Apple’s smartphones.

According to Pegatron, it plans to produce the chips in partnership with PT Sat Nusapersada, an Indonesian electronics company.

“The factory might also be used to produce MacBook components as well, but it would not be in the short term,” said Ignatius.