Report Wire

Tag: Pegatron

  • Apple provider Pegatron’s India manufacturing unit faces prolonged shutdown amid fireplace investigation

    A halt in manufacturing on the iPhone manufacturing unit in India operated by Pegatron, an Apple provider, is anticipated to proceed via Wednesday, and there may be potential for additional disruptions as authorities conduct an investigation into a fireplace incident on the sole Pegatron facility in India, reported Reuters as per their sources.

    Pegatron characterised the fireplace on Sunday as a “minor spark incident,” assuring that it resulted in no accidents and asserting that it had “no financial or operational consequences for Pegatron Corporation.”

    According to info shared by company’s sources with information of the state of affairs, it seems unlikely that manufacturing shifts on the plant will resume on Wednesday. One of those sources talked about that restore work is underway on the facility positioned within the Chengalpattu space close to the southern metropolis of Chennai in Tamil Nadu state, mentioned Reuters. In a worst-case state of affairs, the shutdown may lengthen for all the week.

    Reportedly, a supply of the company mentioned, “Apple representatives have been collaborating with Pegatron after the incident.”

    Reportedly, the Apple provider has requested impartial surveyors to evaluate the fireplace injury, said a supply, as per the report.

    Pegatron, which initiatediPhone meeting operations in India in September of the earlier 12 months, is presently in discussions concerning the institution of a second contract facility for Apple in shut proximity to the present one in Tamil Nadu.

    As reported by analysis agency Counterpoint, Pegatron presently contributes to 10 per cent of Apple’s iPhone manufacturing in India. Apple Inc has made important investments in India since commencing iPhone meeting operations in 2017 via Wistron and subsequently Foxconn, aligning with the Indian authorities’s emphasis on selling native manufacturing.

    In the following 4-5 years, iPhone maker Apple

    has plans to scale up manufacturing in India by over five-fold to round $40 billion (about 3.32 lakh crore), reported information company PTI citing authorities sources.

     

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    (With inputs from Reuters)

     

     

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    Updated: 26 Sep 2023, 04:26 PM IST

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

    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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  • Key Apple companions plan growth in Southeast Asia in 2023

    Apple Inc. companions Foxconn Technology Group and Pegatron Corp. included Southeast Asia of their growth plans for 2023, in an indication main world contract electronics producers will proceed so as to add manufacturing capability outdoors China to mitigate geopolitical and financial dangers. 

    “We will proceed to develop our scale in mainland China, the Americas and Southeast Asia, and these efforts will blossom in 2023,” stated Young Liu, chairman of Foxconn’s flagship unit Hon Hai Precision Industry Co., at an organization occasion on Sunday.

    Separately, Foxconn’s smaller rival Pegatron will allocate $300 million to $350 million this yr to capital expenditure, partly to develop capability in Southeast Asia and enhance automotive part manufacturing in Mexico, firm executives instructed reporters in Taipei on Sunday. Pegatron can also be a Tesla Inc. provider.

    “Diversification of provide chain is an ongoing pattern,” stated Pegatron Co-Chief Executive Officer Johnson Teng.

    In addition to producing iPhones in China, each Foxconn and Pegatron now make a few of Apple’s iconic handsets in India. Apple can also be turning to Vietnam in its place manufacturing base for different merchandise together with AirPods. 

    Pegatron will add capability in Vietnam and Indonesia, the place they have already got present vegetation, in response to Vice Chairman Jason Cheng. The firm at present doesn’t make Apple merchandise in both nation. Foxconn didn’t specify which Southeast Asian nations it plans to increase in.

    Major contract electronics makers began to considerably construct up their manufacturing presence outdoors China through the Trump period, because the then-US president imposed stiff tariffs on some Chinese imports as a part of his commerce conflict with the nation. Some suppliers have been accelerating these diversification efforts amid extended Covid-induced lockdowns in China which have snarled provide chains.

    Both Foxconn and Pegatron encountered Covid-related disruptions in China. Pegatron needed to quickly droop manufacturing, and Foxconn was challenged by a violent protest that engulfed its essential advanced within the metropolis of Zhengzhou, which disrupted the iPhone maker’s exercise and compelled Apple to warn shipments might are available decrease than anticipated. 

     

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  • IT {hardware} PLI: Dell, Wistron, Foxconn amongst 14 cos cleared

    The Ministry of Electronics and Information Technology (MeitY) on Thursday accredited a complete of 14 firms, together with ten home ones, as eligible to take part within the manufacturing linked incentive (PLI) scheme for laptops, tablets, all-in-one-personal computer systems, and servers.
    Global laptop computer and pc conglomerate Dell and different digital giants like Wistron, Flextronics, and Foxconn have been accredited as eligible, whereas home firms comparable to Lava International, Dixon Technologies, Bhagwati (the guardian firm of Micromax), Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been accredited as eligible.
    Earlier in February, the Union Cabinet had accredited the Rs 7,325-crore PLI scheme for laptops, tablets, all-in-one-personal computer systems, and servers, and it was notified on March 3. As per the scheme, incentives ranging between 1 per cent and 4 per cent can be given to those 14 firms on web incremental gross sales over base 12 months, which is 2019-20. The scheme will run until 2024-25.

    ExplainedTrifecta of schemes completethe Centre has now accomplished the trifecta of electronics manufacturing schemes for cellphones and its allied parts, core and peripheral telecom tools. India buys Rs 30,000 crore of laptops and Rs 3,000 crore of tablets per 12 months.

    The MeitY estimates that the full manufacturing for data know-how {hardware} over the subsequent 4 years below the scheme may very well be of as much as Rs 1.61 lakh crore, of which the accredited firms have proposed a manufacturing of Rs 84, 746 crore. “The approved companies under domestic companies category have proposed a production of Rs 76,007 crore. The scheme will bring additional investment in IT Hardware manufacturing to the tune of INR 2,517 crore,” the ministry mentioned in a press launch.
    Like the opposite PLI schemes, the incentives for firms within the telecom and networking tools manufacturing area can be on achievement of a minimal threshold of cumulative incremental funding and incremental gross sales of manufactured items web of taxes. India at present buys laptops value Rs 30,000 crore per 12 months and tablets value Rs 3,000 crore per 12 months, of which about 80 per cent is imported.
    With the approval of eligible firms for PLI scheme for laptops and desktops, the federal government has now accomplished the trifecta of electronics manufacturing schemes for cellphones and its allied parts, core and peripheral telecom tools.
    The PLI scheme for telecom parts value Rs 12,195-crore was additionally accredited by the Union Cabinet on February 17, whereas in April final 12 months the federal government had notified a PLI scheme for cellphones which envisaged incentives value Rs 41,000 crore over the subsequent 5 years.

  • IT {hardware} manufacturing linked incentive: Foxconn, Wistron, Dell, 16 others apply

    Dell and contract producers Foxconn, Wistron and Flextronics are among the many 19 corporations which have filed their purposes underneath the manufacturing linked incentive (PLI) scheme for IT {hardware}, notified on March 3, 2021.
    The scheme, with an outlay of Rs 7,350 crore over 4 years, will present monetary incentives within the vary of 4 per cent to 1 per cent on the web incremental gross sales over the bottom 12 months (2019-20) for manufacturing laptops, tablets, all-in-one PCs and companies.
    As per an official assertion, the electronics {hardware} manufacturing corporations which have utilized underneath class IT {hardware} corporations are Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava. 14 corporations have filed purposes underneath the class home corporations which embody Dixon, Infopower (JV of Sahasra and MiTAC), Bhagwati (Micromax), Syrma, Orbic, Neolync, Optiemus, Netweb, VVDN, Smile Electronics, Panache Digilife, HLBS, RDP Workstations and Coconics.
    Over the following 4 years, the scheme is predicted to result in manufacturing of about Rs 1,60,000 crore. Electronics and IT Minister Ravi Shankar Prasad stated the PLI scheme for IT {hardware} has been an enormous success when it comes to the purposes obtained. —FE