Apple Store 5th Ave in NYCSource: iMore

What you need to know

  • Pegatron is planning to build a $150 million factory in Chennai, India.
  • The company will use the space for Apple-related operations.

As reported by Financial Express, Apple's supply chain partner Pegatron has leased out half a million square feet in an industrial park near Chennai, India. The company is planning to invest $150 million to begin manufacturing components for Apple.

Sources in the state government said that the company has leased out space for Apple-related operations in Tamil Nadu. According to sources privy to the development, Pegatron has leased half a million sq-ft at city-based realty firm Casa Grande's Chennai industrial park. Pegatron Corporation had in November 2020 approved a proposal to invest Rs 1,100 crore through its subsidiary Pegatron Technology India for its India plans. Sources said that the company will have one or two production facilities in India.

Pegatron won't be the only manufacturer in Tamil Nadu that is contracted by Apple. Foxconn, perhaps the most notable supply chain partner for the company, also operates in the area. The report mentions that the company also considered the recent riots at the Wistron factory in its decision to choose Tamil Nadu for its new plant.

Another iPhone maker Wistron had made headlines when a section of workers vandalised the Karnataka plant in December 2020 while protesting salary payments, causing severe damage resulting in halting of the operations. Sources said besides Tamil Nadu's excellent port connectivity coupled with incentives offered by the state government, the Wistron episode would have played in the minds of the Pegatron management while choosing the state for building its manufacturing base for Apple.

According to the report, Tamil Nadu is a popular electronics hub in India, hosting a number of companies including Samsung, Motorola, and Nokia.