Apple supplier Pegatron likely to open a second factory in Chennai: Report

Apple’s Taiwanese supplier Pegatron is likely to start a second factory in Chennai. As per a Reuters report, the new factory will help in assembling of new iPhones.

In India, Apple's first Pegatron facility is based in Tamil Nadu. Apple currently has three suppliers in the country including Wistron, Pegatron and Foxconn. The Wistron plant is based in Bengaluru. Apple currently produces the iPhone SE, iPhone 12, iPhone 13 and iPhone 14 models in India. However, the Pro models that are selling in India are all imported.

This development comes six months after opening the first with an investment of $150 million, Reuters quoted sources as saying.

“Any acquisition of assets will be disclosed based on regulations,” Pegatron told Reuters in a statement.

The talks for opening a second Pegatron facility on lease is currently underway and it will be situated inside Mahindra World City near Chennai, which is where the company inaugurated the first plant in September 2022.

Pegatron’s planned investment outlay for the expansion is unclear but the new factory will reportedly be smaller than the first one.

As per the Couterpoint research, Pegatron holds 10 per cent of Apple’s iPhone production in India on an annualised basis.

Pegatron has become India's second iPhone 14 series supplier. Apple recently shifted a lot of its manufacturing business to India as the company was having some issues in China.

Recently, it was revealed that the tech giant has struck a deal with its supplier Foxconn to build a factory for AirPods in the Indian market. 

Also Read: After iPhones, Apple will make AirPods in India

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