Apple supplier Pegatron temporarily suspended iPhone manufacturing at its factory in south India on Monday, September 25. According to three people who spoke with Reuters, this follows a fire incident that occurred the night before.
Fire Breaks Out at iPhone Factory
Pegatron has canceled all shifts for the day at the plant located close to the city of Chennai in the state of Tamil Nadu. The Taiwanese company has not yet reportedly informed the assembly employees whether or not the facility would operate on Tuesday, September 26.
In a statement sent to Reuters by Pegatron, there was a spark incident at the factory, which is now under control. The occurrence has no significant financial or operational effect on the firm.
It took about five hours to put out the fire, as per a local official who works for the emergency services department. They even had to bring in many fire engines from different stations.
There are no reports of injuries or deaths, and there is no damage to any other property. According to Pegatron's statement, the appropriate authorities are presently investigating to determine what caused the accident.
Counterpoint, a research organization, estimates that Pegatron is responsible for 10% of Apple's iPhone manufacturing in India right now.
Apple has placed a substantial number of bets on India ever since it launched iPhone assembly in the nation in 2017 through Wistron and then Foxconn, despite the fact that the Indian government was pushing for local manufacture at the time.
Pegatron, which began iPhone assembly in India in September 2022, is also discussing establishing a second Indian contract plant for Apple near the current one in Tamil Nadu.
Firms Leaving China for India
As tensions rise between the US and China in the Asia-Pacific region, a number of American corporations are exploring other countries, such as India, to set up new factories. COVID-19 pandemic lockdowns in China, as well as the most recent semiconductor embargo, are two examples of events that had an impact on most of the US businesses.
India boasts a developing young workforce and increasing telecommunications and industrial capacities. It has overtaken China as the world's most populated country this year. MarketWatch reports that large US corporations were enticed by these trends, especially since US electronics exports are estimated to grow from $7 billion in 2019 to $22 billion in 2023, as per CEIC worldwide statistics.
Dec Mullarkey, managing director of SLC Management and an expert in investments and asset allocation, made it clear that businesses were not planning to "decouple" from China. They are seeking alternatives.
Reportedly, several Western companies are following suit and diversifying their holdings away from China and into other emerging economies.
