Apple's biggest assembler Foxconn opened doors to its first India factory in Chennai, to diversify production from China in 2019. It was followed by Taiwanese peers Wistron and Pegatron, as pandemic restrictions in China took a toll on Apple's supply chain.
After Foxconn signed an MoUs for a $700 million factory in Telangana or Karnataka, Pegatron is discussing another facility near Chennai itself.
Pegatron's quick rise in India
For the new iPhone plant in Tamil Nadu, where latest iPhone models will be put together, Pegatron is reportedly willing to shell out $150 million.
Almost half of the smartphones worth $9 billion shipped out of India in the 11 months of FY23 were iPhones.
Of these Apple handsets made in India, 10 per cent are being manufactured by Pegatron.
Eyeing manufacturer-friendly policies
The plans for another iPhone factory in Tamil Nadu come after discussions between Apple and state government officials about labour law reforms.
As per the changes they are seeking, timings at Apple factories in the state will become flexible and at par with units in China.
With better policies and low-cost labour, global brands are eyeing India as a manufacturing hub and alternative to China, apart from Vietnam.
After going from two smartphone factories in 2014 to more than 200 in 2019, India has also introduced additional PLI schemes to boost local production.
