Apple supplier Pegatron veers away from China, in talks to open second unit in India
The second Pegatron manufacturing unit is teased to be located outside Chennai in South India
Apple Inc's Taiwanese supplier Pegatron Corp is planning to open its second manufacturing unit in India for which it will pump in $150 million, reports indicated this weekend. The talks are ongoing between relevant stakeholders, two sources with direct knowledge of the matter were quoted as saying by Reuters.
Pegatron plans to add a second facility near Chennai, just six months after opening the first with an investment of $150 million, Reuters reported.
Apple's shift to India: Why is it important?
The shift is important amid iPhone maker's partners' ongoing efforts to diversify production away from China.
Apple and its key suppliers have been shifting production away from China as they seek to avoid a potential hit to business due to much-reported US-China trade war amid mounting geopolitical competition between world's top two economies. In recent years, Pegatron has sought to expand its footprint in Southeast Asia and North America.
According to the report, India is seen as the next growth frontier for Apple.
The new manufacturing unit will operate "to assemble the latest iPhones".
ALSO WATCH -Apple's iPhone exports from India surpass $2.5 billion
According to the India Cellular and Electronics Association, 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 per cent of them.
Apple's India focus: Potential location ofsecond manufacturing unit of Apple supplier
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, the report said.
(With inputs from Reuters)