Apple Supplier Pegatron Halts iPhone Production in India Due to Factory Fire

India, September 26, 2023 – Apple supplier Pegatron has faced a setback at its south India factory, located near Chennai in Tamil Nadu state. The facility, which contributes significantly to Apple’s iPhone production in India, came to a grinding halt for a second consecutive day following a fire incident on Sunday.

The factory’s production capacity stands at an impressive 26,000 iPhone models per day, but in recent months, it has been producing approximately 8,000-12,000 units daily, as reported by an industry insider.

While the exact cause of the fire is under investigation, Pegatron released a statement affirming that the situation is under control and that it has no significant financial or operational impact on the company. Thankfully, there have been no reported injuries or casualties.

The fire response was swift, with multiple fire engines dispatched to the scene, taking nearly five hours to extinguish the flames. Local authorities, in conjunction with the fire department, are conducting inquiries to determine the cause of the incident.

Pegatron’s contribution to Apple’s iPhone production in India is vital, accounting for 10 percent of the company’s output in the country, according to research firm Counterpoint. This year, Apple is projected to sell more than nine million iPhone models in India, emphasizing the importance of its manufacturing partners like Pegatron.

Pegatron began iPhone assembly in India just last year, in September, and is reportedly in discussions to open a second contract facility for Apple in Tamil Nadu.

This incident is not the first hiccup for Apple’s suppliers in India. In 2021, Foxconn faced production delays due to food poisoning among workers, and in 2020, a Wistron plant was disrupted by worker unrest over wage issues. Earlier this year, a fire at a Foxlink facility in south India, responsible for iPhone charging cables, resulted in a production halt.

Apple’s commitment to India has grown steadily since it commenced iPhone assembly in 2017, initially partnering with Wistron and later Foxconn, in line with the Indian government’s push for local manufacturing.

As investigations continue and Pegatron works to restore its operations, Apple enthusiasts in India will be eagerly watching for updates, hoping for minimal disruptions in the supply chain as they await the latest iPhone models.