Apple supplier Pegatron halts iPhone production in India after a factory fire. The incident’s impact on operations and investigations are discussed.
In a recent development, Pegatron, a significant Apple iPhone supplier, has suspended its factory operations in southern India for a second consecutive day. This decision comes after a fire broke out at the facility on Sunday, causing a temporary halt in iPhone assembly. The factory, located near Chennai in Tamil Nadu, saw operations cease without explanation to workers.
Pegatron confirmed the incident, stating it was a “spark incident” and assured it was under control. However, the exact cause and extent of the damage are currently under investigation by relevant authorities. Pegatron mentioned that the incident would not significantly impact its financial or operational aspects.
The facility, with a daily production capacity of approximately 26,000 iPhones, has been assembling 8,000-12,000 iPhones per day recently, according to industry sources. Pegatron holds a crucial role in Apple’s iPhone production, accounting for 10% of the iPhones produced in India.
The incident adds to a series of challenges faced by Apple’s suppliers in India. In 2021, a Foxconn facility faced production disruptions due to food poisoning among workers. Another supplier, Wistron, had encountered worker unrest in 2020 over wage issues. Pegatron itself started iPhone assembly in India in 2021 and is in talks to establish a second contract facility for Apple.
Apple has been heavily invested in India since commencing iPhone assembly in 2017, in line with the Indian government’s emphasis on local manufacturing. Pegatron’s production halt emphasizes the vulnerability of supply chains and underscores the importance of contingency plans and robust safety measures in high-profile electronics manufacturing.
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