Apple Supplier Pegatron Halts Work at iPhone Plant for Second Day After Fire

The Pegatron facility has a production capacity of about 26,000 iPhone models per day.

By Reuters | Updated: 26 September 2023 12:25 IST

Apple Supplier Pegatron Halts Work at iPhone Plant for Second Day After Fire

Photo Credit: Reuters

The Pegatron plant has been assembling about 8,000-12,000 iPhones per day in recent months

Highlights

The Taiwanese firm had called off all shifts on Monday after the fire
The cause of the fire is currently under investigation
Pegatron accounts for 10 percent of Apple's iPhone production in India

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

The workers were not given a reason for the directive, said the sources who have direct knowledge of the matter.

The Taiwanese firm had called off all shifts on Monday at the factory near the city of Chennai in Tamil Nadu state after the fire incident, two source said.

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Pegatron previously told Reuters in a statement on Monday "there was a spark incident" at the facility and is currently under control. The incident "does not have significant financial or operational impact" for the company, it added.

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

Pegatron declined to comment on the production estimate.

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Apple did not respond to a request for comment.

A local official with the emergency responses department said multiple fire engines from various stations had to be brought in to douse the fire, taking nearly five hours.

"There are no injuries, no casualties, nor damage to other assets. The cause of (the) accident is currently under investigations by (the) relevant authority," Pegatron said.

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A police official told Reuters an inquiry was underway along with the fire department, describing it as a minor incident.

Local media reported late Monday the fire led to black smoke covering the nearby area, with footage showing security guards trying to clear a crowd that had gathered near the entrance of the facility.

Pegatron accounts for 10 percent of Apple's iPhone production in India, according to research firm Counterpoint. It estimates Apple will sell more than nine million iPhone models in India this year.

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

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

Apple launched the iPad Pro (2022) and the iPad (2022) alongside the new Apple TV this week. 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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