Apple supplier Pegatron halts work at iPhone plant for second day after fire

Apple supplier Pegatron has told its factory workers not to report to work on Tuesday, three sources told Reuters, halting assembly of iPhone models for the second consecutive day at a factory in southern India where a fire broke out on Sunday. Went.

Sources with direct knowledge of the matter said that no reason was given to the employees for the instructions.

The Taiwanese company stopped all shifts on Monday at its factory located near Chennai city in Tamil Nadu state following the fire incident, two sources said.

Pegatron told Reuters in a statement earlier on Monday that “a spark incident had occurred” at the facility and was currently under control. It said the incident will not have any significant financial or operational impact on the company.

The facility has a production capacity of about 26,000 iPhone models per day, but in recent months it has been assembling about 8,000-12,000 iPhone models per day, an industry source said.

Pegatron declined to comment on production estimates.

Apple did not respond to a request for comment.

A local official from the emergency response department said that several fire tenders had to be called from different stations to control the fire, which took about five hours.

“There were no injuries, no casualties, nor any damage to other properties. The cause of the accident is currently being investigated by the relevant authority,” Pegatron said.

A police officer described it as a minor incident and told Reuters that an investigation was being conducted in conjunction with the fire department.

Local media reported late Monday that the fire caused black smoke to spread across the surrounding area, with footage showing security guards trying to disperse a crowd gathered near the facility’s entrance.

According to research firm Counterpoint, Pegatron accounts for 10 percent of Apple’s iPhone production in India. Apple is estimated to sell more than nine million iPhone models in India this year.

Apple has bet big on India since it started iPhone assembly in the country through Wistron and later Foxconn in 2017, as the Indian government pushed for local manufacturing.

Pegatron, which began iPhone assembly in India in September last year, is also in talks to open a second Indian contract facility for Apple near the existing one in Tamil Nadu.

The incident is the latest problem to hit one of Apple’s 14 suppliers in India.

Production at a Foxconn facility was affected by food poisoning among workers in 2021, while a Wistron plant in India was hit by labor unrest over non-payment of wages in 2020. In February, a fire at Foxlink’s South Indian facility for iPhone charging cables forced it to halt production.

© Thomson Reuters 2023

Apple launched the iPad Pro (2022) and iPad (2022) this week, along with the new Apple TV. We discuss the company’s latest products, along with our review of the iPhone 14 Pro on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and wherever you get your podcasts.
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