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Apple supplier Pegatron halts operation at India plant due to fire incident

Apple supplier Pegatron halts operation at India plant due to fire incident
Reports suggest that the production shutdown at Pegatron’s Chennai facility is expected to continue into the third day.

Apple’s key supplier Pegatron has suspended operations at its manufacturing plant in India for the second consecutive day due to a fire incident. The fire, which broke out on Monday, has disrupted the assembly of iPhones at the facility.

Pegatron has instructed its workers at the factory near Tamil Nadu’s Chennai to not report to work as they assess the extent of the damage and work on recovery efforts. The extent of damage and the cause of the fire remain under scrutiny. However, the company told media outlet Reuters that no injuries or casualties, or damage to assets have been reported so far.

Meanwhile, the incident has raised concerns about potential disruptions in the supply chain for Apple products, particularly iPhones, as Pegatron is a crucial component of Apple’s global manufacturing network. The halt in operations raises concerns about potential delays in the production and delivery of iPhones.

As investigations into the fire continue, it remains to be seen how long the disruption will last and if Pegatron can recover swiftly to meet the demands of Apple and its customers. However, reports suggest that the production shutdown is expected to continue into the third day, causing disruptions that could have a ripple effect on Apple’s product availability. Official comments from Apple and Pegatron are still awaited.

Meanwhile, 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. The Taiwanese firm has been assembling 8,000-12,000 iPhones per day in the recent months, the report noted. This is down from its production capacity of 26,000 iPhones per day, it added. The reason for the same is unclear.

American multinational tech giant Apple has increased manufacturing in India in recent months, 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 Pegatron, other manufacturers like Foxconn and Wistron have also been involved in iPhone assembly in India.

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