BackApple supplier Pegatron temporarily halts iPhone production in India after factory fire
Pegatron suspends iPhone assembly in India after a fire incident at its facility near Chennai. No substantial consequences reported.
PremiumPegatron, a supplier for Apple, temporarily suspended iPhone assembly at its south India facility on Monday due to a fire incident that occurred on Sunday night, according to Reuters.
Reportedly, the Taiwanese company canceled all shifts for the day at the factory located near Chennai in Tamil Nadu state. It has not yet communicated to assembly workers whether the facility will resume operations on Tuesday, as per the Reuters sources.
In a statement given to the agency, Pegatron confirmed that there was a spark incident at the facility, which is now under control. The company also emphasized that this incident does not carry substantial financial or operational consequences for them.
According to a local official from the emergency response department, it took nearly five hours to extinguish the fire, requiring the involvement of multiple fire engines from different stations.
Pegatron stated, "There are no injuries, casualties, or damage to other assets as a result of the incident. The cause of the accident is currently being investigated by the relevant authorities."
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.
Pegatron, which initiated iPhone 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.
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.
According to the report, the firm has crossed the $7 billion production mark in the last financial year.
"Apple has plans to increase production in India to over $40 billion in the next 4-5 years. It has crossed $7 billion in the last fiscal," the official said.
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(With inputs from Reuters)
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