Taiwanese iPhone supplier Pegatron quashes China blockade report

Company declares operations are normal and rebuts allegation Beijing crimped component deliveries

Taiwanese electronics manufacturer and Apple supplier Pegatron has issued a statement on the Taiwan Stock Exchange (TSWE) to refute reports it was forced to suspend operations after Chinese authorities stopped supplies reaching its facilities.

“In response to today’s media reporting that factories in China were forced to suspend production and shipments, Pegatron would like to clarify that our operations in China currently are running as usual, there’s no suspension on productions and shipments,” wrote Pegatron.

The report Pegatron mentioned was in Japanese outlet Nikkei and claimed cartons delivered to Pegatron’s Suzhou facility in mainland China carrying the words “Taiwan” or “Republic of China” were delayed after receiving extra scrutiny from Chinese customs officials.

The report drew connections to U.S. House Speaker Nancy Pelosi’s recent trip to Taipei where Pegatron vice chairman Jason Chen attended a lunch and posed for photos with Pelosi and Taiwan Semiconductor Manufacturing Company execs. Chinese state-sponsored media derided Pelosi’s efforts to meet with TSMC execs, in particular, as a “photo-op.”

Nikkei Asia reported that shipments received in mainland China cannot contain the words “Republic of China," "R.O.C." or "Taiwan” on their documents or boxes.

“These rules have existed for years, but they have been enforced more frequently as tensions between Beijing and Taipei have increased, creating more trade barriers, according to multiple suppliers and logistics companies,” the outlet stated.

Taiwan's first semiconductor company United Microelectronics Corporation, was also reportedly on the defensive after its founder, Robert Tsao, criticized Chinese show of force via military drills surrounding the island during the visit.

Tsao reportedly vowed at a press conference to donate over $100 million to bolster Taiwan's defenses against China, releasing a statement the next day calling the Chinese Communist Party a “hooligan.”

In response, the company reportedly clarified to Chinese media that Tsao has been retired from UMC for over a decade.

According to Chinese state-sponsored media, Taiwan Affairs Office of the State Council spokesperson Ma Xioguang characterized Tsao’s move as a distortion of basic fact that smear Chinese mainland. ®

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