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Apple’s primary iPhone manufacturer, Pegatron, is set to increase its production in India and is reportedly in talks to lease another factory in the Chennai region. The move comes as part of the company’s efforts to expand its manufacturing footprint in the country.
Pegatron has been working towards increasing its presence in India since registering a local subsidiary in 2020. The company had announced an initial investment of $150 million in the country and also spent $14 million on land for a new iPhone factory, which opened in September 2022.
According to Reuters, Pegatron is now looking to further increase its manufacturing capacity in India. The company is in talks to lease a facility within Mahindra World City near Chennai, close to its existing plant and about 200 miles from New Delhi. One of the two sources reportedly said that the factory is intended “to assemble the latest iPhones”.
While Apple has not commented on the development, Pegatron has said that “any acquisition of assets will be disclosed based on regulations”. However, the move to expand production in India is in line with many Apple suppliers’ efforts to reduce their reliance on China amid US/China trade tensions.
Pegatron’s move towards expanding production in India could also help the company mitigate supply chain risks, especially as India continues to position itself as a manufacturing hub. The country’s favorable policies and incentives for companies have attracted several global tech giants, including Apple, to invest in local manufacturing.
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The push towards local manufacturing in India could also help Apple avoid potential disruptions to its supply chain caused by geopolitical tensions, as it seeks to diversify its production base beyond China. Pegatron’s latest move is a significant step in that direction, and it remains to be seen how the company’s efforts will play out in the coming years.