A halt in production at the iPhone factory in India operated by Pegatron, an Apple supplier, is anticipated to continue through Wednesday, and there is potential for further disruptions as authorities conduct an investigation into a fire incident at the sole Pegatron facility in India, reported Reuters as per their sources.
Pegatron characterized the fire on Sunday as a “minor spark incident,” assuring that it resulted in no injuries and asserting that it had “no financial or operational consequences for Pegatron Corporation.”
According to information shared by agency’s sources with knowledge of the situation, it appears unlikely that production shifts at the plant will resume on Wednesday. One of these sources mentioned that repair work is underway at the facility located in the Chengalpattu area near the southern city of Chennai in Tamil Nadu state, said Reuters. In a worst-case scenario, the shutdown might extend for the entire week.
Reportedly, a source of the agency said, “Apple representatives were collaborating with Pegatron after the incident.”
Reportedly, the Apple supplier has asked independent surveyors to assess the fire damage, stated a source, as per the report.
Pegatron, which initiatediPhone assembly operations in India in September of the previous year, is currently in discussions regarding the establishment of a second contract facility for Apple in close proximity to the existing one in Tamil Nadu.
As reported by research firm Counterpoint, Pegatron presently contributes to 10 per cent of Apple’s iPhone production in India. Apple Inc has made significant investments in India since commencing iPhone assembly operations in 2017 through Wistron and subsequently Foxconn, aligning with the Indian government’s emphasis on promoting local manufacturing.
In the next 4-5 years, iPhone maker Apple
has plans to scale up production in India by over five-fold to around $40 billion (about 3.32 lakh crore), reported news agency PTI citing government 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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