Pegatron's India iPhone Factory To Remain Shut For The Third Day Following Fire Incident

SUMMARY

Shifts are unlikely to resume at Pegatron’s iPhone manufacturing facility near Chennai on Wednesday and the shutdown could last a week in the worst case scenario

Efforts are currently underway to address and repair the damage caused by the fire incident on Sunday night

Following the fire incident, Pegatron temporarily suspended iPhone assembly operations starting Monday

The production shutdown at the Chennai manufacturing facility of Pegatron, a key supplier of Apple, is expected to extend for the third day on Wednesday as authorities investigate a fire incident at the Taiwanese firm’s unit on Sunday night.

Citing sources, news agency Reuters reported that shifts are unlikely to resume at the iPhone manufacturing facility on Wednesday and the shutdown could last a week in the worst case scenario.

The report said efforts are currently underway to address and repair the damage caused by the fire incident at the factory, located in the Chengalpattu area near Chennai.

Moreover, Apple representatives are closely working with Pegatron following the incident.

Pegatron has appointed independent surveyors to evaluate the extent of the damage. As of Tuesday, the factory’s gates remained firmly shut, permitting only a limited number of workers to enter the premises.

Following the fire incident, Pegatron temporarily suspended iPhone assembly operations starting Monday. There were no casualties or injuries due to the fire, described as a spark incident, as it occurred during a holiday when the factory was not operational.

Pegatron presently accounts for about 10% of Apple’s annual iPhone production in India, according to research firm Counterpoint.

The development comes at a time when Apple is reportedly planning to ramp up production in India by more than five times from the current levels to around $40 Bn.

Apple is manufacturing various iPhone models in India, including the latest iPhone 15. The Cupertino-based tech giant is also contemplating production of AirPods in the country from next year.

In recent quarters, the technology giant has been on a drive to increase its production capacity in India, through its contract manufacturing partners Foxconn, Wistron, and Pegatron.

These three contract manufacturers have not only increased their presence in India but have also reaped the benefits of the Indian government’s production-linked incentive (PLI) scheme for smartphone manufacturing, which was introduced in 2021.

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