Operations at an Apple supplier, Pegatron’s factory near Chennai, have come to a standstill for a second consecutive day after a massive fire erupted on Sunday, forcing the company to halt assembly lines and instruct workers to stay away. Sources with direct knowledge of the matter revealed that the workers were not provided with a specific reason for this directive.
The fire incident, which occurred near the city of Chennai in Tamil Nadu state, prompted Pegatron to cancel all shifts on Monday, disrupting the production of iPhones at the facility.
Pegatron issued a statement on Monday acknowledging the “spark incident” at the factory, emphasizing that it was under control and had no significant financial or operational impact on the company. Although the facility has a daily production capacity of approximately 26,000 iPhones, it has been assembling only 8,000-12,000 iPhones daily in recent months, according to industry sources.
Neither Pegatron nor Apple has officially commented on the incident or the estimated production loss caused by the fire.
Local authorities and fire department personnel swiftly responded to the fire, bringing in multiple fire engines to extinguish the flames, which took nearly five hours to subdue. Fortunately, there were no reported injuries, casualties, or damage to other assets in the incident. An investigation into the cause of the accident is currently underway.
While local media reported that the fire led to the release of black smoke in the vicinity, security personnel at the factory worked to clear a crowd that had gathered near the facility’s entrance.
Pegatron’s Significance in Apple’s India Operations
Pegatron holds a critical role in Apple’s iPhone production in India, contributing approximately 10 percent of the country’s iPhone assembly, as noted by research firm Counterpoint. India has become a key market for Apple, with expectations of selling over nine million iPhones in the country this year. Apple’s commitment to India’s local manufacturing initiatives led to the establishment of assembly facilities by suppliers like Pegatron, Wistron, and Foxconn.
Pegatron, which began iPhone assembly in India in September of the previous year, is also exploring the possibility of opening a second contract manufacturing facility for Apple in Tamil Nadu, adjacent to the existing one.
This incident marks the latest challenge faced by Apple’s suppliers in India. In 2021, production was affected at a Foxconn facility due to food poisoning among workers, and a Wistron plant witnessed worker unrest in 2020 due to non-payment of wages. Earlier this year, a fire at a South Indian Foxlink facility, responsible for iPhone charging cables, led to a production halt.
