Pegatron Eyes Tamil Nadu for Second Factory to Assemble Latest iPhones

Taiwan-based electronics manufacturer Pegatron is reportedly in talks to open a second factory in Tamil Nadu, India to assemble the latest iPhones for Apple.

According to a report by the Economic Times, the company is in advanced negotiations with the Tamil Nadu government for the proposed factory, which would be located in the state’s industrial hub of Sriperumbudur. The report cites anonymous sources who claim that the new factory would create thousands of jobs in the region.

Pegatron already operates a manufacturing facility in the same area, which has been producing older models of the iPhone for Apple since 2019. The new factory would reportedly be dedicated to assembling the latest iPhone models, including the iPhone 13 series.

The move is part of a larger push by Apple to diversify its supply chain and reduce its dependence on China. The tech giant has been encouraging its suppliers to expand operations in India, which offers lower labor costs and tax incentives.

Pegatron’s reported plans come on the heels of a similar announcement by another Apple supplier, Foxconn, which recently announced that it will invest $1 billion in expanding its operations in Tamil Nadu, including a new factory for iPhone production.

The expansion of iPhone manufacturing in India could also have broader implications for the country’s economy. India has been seeking to position itself as a major player in the global electronics manufacturing industry, and has been offering incentives to attract foreign companies to invest in the sector.

However, the move has also sparked concerns about working conditions and labor rights in India’s electronics factories. Human rights organizations have raised concerns about the exploitation of workers, particularly migrant workers who are often employed under precarious conditions.

Overall, while Pegatron’s plans for a second factory in Tamil Nadu are still in the negotiation stage, the move could represent a significant step in Apple’s efforts to diversify its supply chain and expand its manufacturing operations in India.