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Apple provider Pegatron in talks to open second manufacturing unit in India: Report

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Pegatron opened its first India factory in Chennai in 2022 (REUTERS)

Apple Inc’s provider Pegatron Corp plans so as to add a second manufacturing facility in India. According to a report by Reuters, the Taiwanese provider is in talks to open a second India manufacturing unit, citing two sources with direct data of the matter.

As per the sources, the corporate’s second facility could come close to the southern metropolis of Chennai in Tamil Nadu state. For the unversed, Pegatron opened its first India manufacturing unit in Chennai nearly six months in the past. It then invested $150 million.

The new manufacturing unit, the primary supply mentioned, is “to assemble the most recent iPhones”. The new factory, it added, will be smaller than the first one.

Pegatron currently accounts for 10% of Apple’s iPhone production in India on an annualised basis, research firm Counterpoint said.

The Reuters report says that Pegatron declined to comment but said, “Any acquisition of assets will be disclosed based on regulations.”

Apple and its key suppliers have been shifting manufacturing away from China, proudly owning to the rising commerce frictions between US and China. In current years, Pegatron has sought to broaden its footprint in Southeast Asia and North America.

According to the India Cellular and Electronics Association, India is seen as the subsequent development frontier for Apple. Around $9 billion value of smartphones have been exported from India between April 2022 and February this 12 months, and iPhones accounted for greater than 50% of that.

India is the second largest smartphone market on the planet, the place Apple additionally plans to assemble iPad tablets and AirPods.

The report says that the talks for beginning a second Pegatron facility on lease are ongoing and it will likely be positioned inside Mahindra World City close to Chennai, simply round the place the corporate inaugurated the primary plant in September 2022.

Pegatron’s deliberate funding outlay for the enlargement will not be instantly clear, it additional states. 

A report by Reuters final week mentioned that Foxconn – one other key Apple provider has plans to construct a $200 million manufacturing unit in India to supply the wi-fi earphones for Apple after profitable a contract. The firm already assembles some iPhone fashions at its Tamil Nadu plant.

(With inputs from businesses)

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