Pegatron resumes iPhone assembly at Indian factory, three days after fire

Edited By: Abhinav Singh
Chennai Updated: Sep 27, 2023, 10:37 PM(IST)

The Taiwanese firm has cancelled the shifts at the factory since the blaze first erupted on Sunday night Photograph:( Reuters )

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Manufacturing had resumed in a phased manner at the facility, according to government sources 

Nearly three days after a fire incident caused the company to down shutters on the facility, Pegatron on Wednesday announced production had resumed at its Chennai facility in the southern Indian state of Tamil Nadu. 

According to a Reuters report, citing government sources, manufacturing had resumed in a phased manner at the facility. 

Multiple reports have claimed that the fire was sparked by a short-circuit after an electrical switch was left on, following testing of the devices as they were being put together. 

After the incident, the Taiwanese firm confirmed "there was a spark incident" which was under control, adding that the incident did "not have significant financial or operational impact" for the company.

"There are no injuries, no casualties nor damage to other assets. The cause of the accident is currently under investigation by (the) relevant authority," Pegatron said.

Initial reports stated that Pegatron had cancelled two shifts on Monday. However, the company was forced to cancel shifts on the next two subsequent days as well.

It is understood that the factory works round-the-clock from Monday to Saturday with a scheduled off on Sundays. The factory's 24-hour workday is split into three shifts- A (6 am-2 pm), B (2 pm-10 pm) and C (10 pm-6 am).

Situated within the Mahindra World City in Chengalpattu district (nearly 60 km from the capital city of Chennai) of Tamil Nadu, the Pegatron facility is capable of assembling almost 20,000 iPhones per day.

The models being assembled here are Apple iPhone 14 Plus and 15 Plus. Considering the average cost of these models to be $1000, the impact of not operating for a day meant that $20 million worth of phones were not being produced. 

Notably, Pegatron started assembling iPhones in India in September last year. Buoyed by the success of the plant, the company is in talks to open a second Indian facility for Apple near the current one in Tamil Nadu. 

Watch | Apple supplier halts assembly at India plant; Pegatron is Apple supplier | World DNA

 

Apple betting big on India 

Apple has been betting big on India to expand its market. It started iPhone assembly in the country, way back in 2017 via Wistron and later Foxconn.  

According to reports, the Cupertino-based company is planning to expand its investment in the country to approximately $40 billion over the next four to five years.

The company is looking to expand its horizon beyond the current iPhone manufacturing and assembling operations. The company now intends to begin the production of Airpods in the coming year. However, there are currently no immediate plans to manufacture iPads or laptops within India.

(With inputs from agencies)




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