Apple partner Pegatron invests $150 million on production site in India

Apple Store 5th Ave in NYC
Apple Store 5th Ave in NYC (Image credit: 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.

Joe Wituschek

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.