India: Fire at Pegatron's iPhone assembly facility to halt ops for a week, say sources

The blaze, resultant smoke and related damage at the Apple iPhone assembly facility run by Taiwanese firm Pegatron is likely to halt assembly operations at the plant for at least a week, sources told WION.

Situated within the Mahindra World City in Chengalpattu district (nearly 60 km from the capital city of Chennai) of Tamil Nadu, the Pegatron facility is capable of assembling almost 20,000 iPhones per day.

The models being assembled here are Apple iPhone 14 Plus and 15 Plus. Considering the average cost of these models to be $1000, the impact of not operating for a day would mean that $20 million worth of phones are not being produced.

The blaze that began on Sunday night is learnt to have been put out in a few hours after the incident was reported. Videos of the incident showed multiple fire tenders and an ambulance at the Pegatron facility.

Personnel working at Pegatron told WION that there are more than 9,000 of them involved in iPhone assembly at the factory and that production activity had not been carried out on Monday. It is understood that the factory works round-the-clock from Monday to Saturday with a schedule off on Sundays. The factory's 24-hour workday is split into three shifts- A (6 am-2 pm), B (2 pm-10 pm) and C (10 pm-6 am).

Nearly 1,000 personnel are learnt to have reported for work at the facility on Tuesday morning. However, the assembly operations were not carried out as the damage assessment and cleaning are underway at the facility.

"The blaze began at one assembly hall and from there the smoke spread to the other two assembly halls. Some of the high-tech, imported machinery have also sustained damaged," WION has learnt.

Owing to the above factors, it is said that the resumption of assembly operations could take a week or longer.

When requested for an official response, Pegatron replied to WION: "At the company's factory in Chennai, India, on the evening of the 24th local time, there was a spark incident, which is currently under control. There are no injuries, no casualties nor damage to other assets. The cause of accident is currently under investigations by relevant authority, and the incident does not have significant financial or operational impact to Pegatron Corporation."

Pegatron evades questions

However, Pegatron Corporation did not respond to WION's specific questions on the operational status of internal fire suppression systems, the number of personnel who were present at the time of the incident, the extent of damage to property, how the blaze and its aftermath affects assembly and whether Apple has been made aware of the fire accident. WION also e-mailed Apple, seeking an official statement. So far, there has been no revert from the American tech giant.

Notably, this is the second major mishap at a Tamil Nadu facility linked to the Cupertino-based tech giant and the world's largest tech firm. In December 2021, more than 150 women workers at the Foxconn facility in Sriperumbudur, near Chennai, Tamil Nadu had fallen ill after consuming the meals provided at the staff dormitory.

Back then, the women had protestedand blocked a crucial national highway. The issue was later taken up by the Taiwanese contract manufacturer Foxconn, Apple and the Tamil Nadu Government. WION had visited and reported from the dorm rooms where the women workers had stayed.

Last year, in light of the issues connected with the Foxconn facility, Apple placed its iPhone contract manufacturer Foxconn’s Chennai unit on probation, over cleanliness and hygiene issues at their staff dormitory and dining areas. Later, after an audit and corrective measures by Foxconn and the intervention of the Tamil Nadu Government, the factory resumed its production activities in January 2022.

In the Steve Jobs Biography written by American journalist and author Walter Isaacson, it is said that the mercurial Apple founder used to make surprise visits to Apple assembly facilities and carry out inspections. During such inspection visits, he would put on a brand-new, white-coloured hand glove and wipe the factory work floor using the same. Even if the smallest amounts of dirt or dust were found on the glove, Jobs would go ballistic at those running at the factory. Such was the man's obsession with perfection and cleanliness, the book says.

Recurring mishaps at Apple's iPhone assembly facilities in India raise questions about the safety standards followed by the American tech giant and its Taiwanese partners here. It is also important to remember that the Indian Government takes pride in bringing Apple assembly lines to India and rolling out high-end tech products worth billions. Such incidents also bring to the fore the responsibility of relevant government agencies in conducting regular inspections, audits and holding the factory officials accountable for mishaps or lapses in compliance.

Amid geopolitical tensions with China, American tech giants including Apple have been looking to move more of their assembly facilities to India and southern Indian states have been taking the lead in luring the investors, predominantly Taiwanese contract manufacturers. Apple also pins great hope on the young and aspirational Indian customer who wants to flaunt tech luxury. In line with this, Apple CEO Tim Cook visited India earlier this year and also opened Apple-owned retail outlets in Mumbai and Delhi, both of these outlets are said to be performing brisk business.

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