iPhone manufacturer Pegatron sets up first Indian unit

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Taiwan’s Pegatron Corporation, the contract manufacturer for Apple iPhones, and Tata Electronics are investing and setting up plants in southern Indian state Tamil Nadu to make mobile parts.

Pegatron is accelerating expansion in India. According to an Indian news source, both parties along with a couple of others have signed MoUs Tuesday accumulating investment up to 280.53 billion rupees and creating 68,775 jobs.

Pegatron alone invested 11 billion rupees in setting up factories near Mahindra World City on the outskirts of Chennai and is expecting to recruit 14,079 workers. The new facility will be in production starting from the second half of 2021.

Pegatron enlarges investment

Regardless of Wistron workers vandalizing the working stations at southwest Indian city Karnataka protesting for underpaid workload last December which resulted in halted operations and severely damaged facilities, Pegatron carried on with plans to expand investments in India. 

Shortly after the party announced to establish a subsidiary in India, a further investment of 11 billion rupees, roughly US$1.5 bn to build a plant through its subsidiary Pegatron Technology India quickly followed last November. 

Made in India

The Government of India had set the Production Linked Incentive (PLI) Scheme last year to encourage investments in electronics manufacturing in India. Tamil Nadu state aims to become an electronics manufacturing hub accounting for 25% world’s electronic products by 2025. 

Last year, the Indian government had nodded to 16 companies to land in India under the scheme, successfully attracting global electronics manufacturers seeking to diversify assembly locations from solely betting on China given risen tensions with the US.

Third iPhone manufacturer to enter India

Following Foxconn and Wistron, Pegatron is the third iPhone contract manufacturer to set up a manufacturing unit in the country. Other global companies including Nokia, Samsung, Dell and HP have also set facilities in southern Indian cities.


Source: anue, Economic Times

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