Pegatron, a major Taiwanese Apple assembler is in talks to open a second factory in India, Reuters reports, citing “two sources with direct knowledge of the matter,” as Apple partners continue to diversify production away from CCP-controlled China.
Munsif Vengattil and Aditya Kalra for Reuters:
Pegatron plans to add a second facility near the southern city of Chennai in Tamil Nadu state, just six months after opening the first with an investment of $150 million, said the sources, who sought anonymity as the talks are private.
The new factory, the first source said, is “to assemble the latest iPhones”.
India is seen as the next growth frontier for Apple. Around $9 billion worth of smartphones have been exported from India between April 2022 and February this year, and iPhones accounted for more than 50% of that, according to the India Cellular and Electronics Association.
Pegatron currently accounts for 10% of Apple’s iPhone production in India on an annualised basis, research firm Counterpoint said.
The talks for starting a second Pegatron facility on lease are ongoing and it will be located inside Mahindra World City near Chennai, just around where the company inaugurated the first plant in September 2022.
Pegatron’s planned investment outlay for the expansion is not immediately clear. The first source, however, said the new factory will be smaller than the first one.
MacDailyNews Take: The CCP reaps what it sowed. Literally.
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