Pegatron has refuted media claims that, following a meeting between a business executive and US House speaker Nancy Pelosi, Chinese customs officials were holding shipments to and from its plant locations in China for inspection.

Pegatron, a significant iPhone manufacturer, stated in a filing with the Taiwan Stock Exchange that production at all of its China sites and shipments are continuing as usual (TWSE).

The reports surfaced following a Wednesday luncheon that Taiwan President Tsai Ing-wen held where Pegatron Vice Chairman Jason Cheng met with Pelosi. China is upset about the US House speaker’s trip to Taiwan.

Morris Chang, the founder of TSMC, and Mark Liu, the chairman, were also invited to the lunch along with Cheng. In addition to an 8-inch fab in Shanghai, TSMC also runs a 12-inch facility in Nanjing, China, where the foundry is starting to expand its manufacturing capacity for the 28nm technology.

Next to Foxconn Technology, Pegatron is the second-largest contract electronics company based in Taiwan. Industry sources claim that Pegatron mostly fulfills iPhone orders at its production location in Suzhou, Jiangsu Province, China.

According to the sources, TSMC is Apple’s only supplier of bespoke silicon chips. The pure-play foundry is accelerating its sub-5nm process capacity increases in Taiwan while also expanding its Nanjing plant to incorporate 28nm process manufacturing.