Apple Supplier Pegatron Temporarily Shut Down its iPhone Production Plant in India After Fire Breaks Out

A recent fire incident led Pegatron, an Apple supplier, to temporarily halt iPhone manufacturing at its south India site. The plant in Tamil Nadu state, close to Chennai, reportedly had all of its shifts for the day cancelled by the Taiwanese corporation. Whether the factory would restart operations on Tuesday has not yet been disclosed to the assembly line employees, according to the Reuters sources.

Company's take on the situation

Pegatron confirmed in a statement to the agency that there was a spark at the facility, which is now under control. The company also emphasized that this case has no significant financial or operational consequences for them.

According to a local fire department official, it took almost five hours to put out the fire, which required the participation of several fire engines at different stations. Pegatron announced: "There were no injuries, bodily harm or other property damage as a result of the incident. The cause of the accident is currently under investigation by the competent authorities."

As reported by research firm Counterpoint, Pegatron currently produces 10 percent of Apple's iPhone production in India. Apple Inc has made significant investments in India since it began assembling the iPhone in 2017 through Wistron and later Foxconn, reflecting the Indian government's push to promote local manufacturing.

Apple plans to increase its production in India

Pegatron, which began assembling iPhones in India last September, is currently in talks with Apple to set up another contracted facility near its current location in Tamil Nadu.

In the next 4-5 years, iPhone maker Apple plans to increase its production in India more than five times to about $40 billion (about Rs 3.32 lakh crore), news agency PTI reported citing government sources. 

According to the report, the company crossed the $7 billion production mark last fiscal year. “Apple plans to increase its manufacturing in India to over $40 billion in the next 4-5 years. In the last budget, it crossed $7 billion," the official said.