Apple provider Pegatron’s India manufacturing unit faces prolonged shutdown amid fireplace investigation

A halt in manufacturing on the iPhone manufacturing unit in India operated by Pegatron, an Apple provider, is anticipated to proceed via Wednesday, and there may be potential for additional disruptions as authorities conduct an investigation into a fireplace incident on the sole Pegatron facility in India, reported Reuters as per their sources.

Pegatron characterised the fireplace on Sunday as a “minor spark incident,” assuring that it resulted in no accidents and asserting that it had “no financial or operational consequences for Pegatron Corporation.”

According to info shared by company’s sources with information of the state of affairs, it seems unlikely that manufacturing shifts on the plant will resume on Wednesday. One of those sources talked about that restore work is underway on the facility positioned within the Chengalpattu space close to the southern metropolis of Chennai in Tamil Nadu state, mentioned Reuters. In a worst-case state of affairs, the shutdown may lengthen for all the week.

Reportedly, a supply of the company mentioned, “Apple representatives have been collaborating with Pegatron after the incident.”

Reportedly, the Apple provider has requested impartial surveyors to evaluate the fireplace injury, said a supply, as per the report.

Pegatron, which initiatediPhone meeting operations in India in September of the earlier 12 months, is presently in discussions concerning the institution of a second contract facility for Apple in shut proximity to the present one in Tamil Nadu.

As reported by analysis agency Counterpoint, Pegatron presently contributes to 10 per cent of Apple’s iPhone manufacturing in India. Apple Inc has made important investments in India since commencing iPhone meeting operations in 2017 via Wistron and subsequently Foxconn, aligning with the Indian authorities’s emphasis on selling native manufacturing.

In the following 4-5 years, iPhone maker Apple

has plans to scale up manufacturing in India by over five-fold to round $40 billion (about 3.32 lakh crore), reported information company PTI citing authorities sources.

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(With inputs from Reuters)

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Updated: 26 Sep 2023, 04:26 PM IST

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