Taiwan-based electronics manufacturers Foxconn and Pegatron have suspended operations at their iPhone production units in India’s southern Indian city of Chennai, according to a Reuters report. The decision is influenced by the severe weather conditions caused by Cyclone Michaung that is affecting lives in various southern Indian states and union territories including Andhra Pradesh, Tamil Nadu and Puducherry.
Chennai, a key hub for electronics and manufacturing in the state of Tamil Nadu, has been experiencing torrential rains, leading to widespread flooding and infrastructural disruptions. The impact of the cyclone, which is moving towards Andhra Pradesh, has been felt across various sectors, with the technology industry being one among the hardest hit.
Foxconn’s facility in Tamil Nadu, a major contributor to Apple’s iPhone production, currently employs approximately 35,000 workers. The company is in the process of evaluating the situation and has not yet confirmed when operations will resume. This pause in production comes at a critical time as Apple recently reported its highest quarterly iPhone shipments in India, exceeding 2.5 million units, according to data from market analytics firm Counterpoint Research.
Meanwhile, for Pegatron, this is not the first disruption faced by the company in India. It had to temporarily cease its iPhone assembly line following a fire incident in September. The repeated disruptions raise concerns about the resilience of tech manufacturing in the region. However, earlier this year, it was reported that Pegatron is in talks to open a second factory in the country, an expansion that could potentially help mitigate the impact of such incidents in the future due to diversifying production locations.
Apple, Foxconn, and Pegatron have yet to release official statements regarding the impact of the production halt on their operations and supply chain. American multinational tech giant Apple has increased manufacturing in India in the recent times, a strategic move to diversify its production base, tap into a growing market, and reduce risks associated with over-reliance on a single manufacturing hub in China. Besides Foxconn and Pegatron, Wistron has also been involved in iPhone assembly in India.
