iPhone Assembler Pegatron Reportedly Readies $150m Investment in India

Apple assembly partner Pegatron's board of directors is said to have approved a proposal to spend $150 million to build a manufacturing plant in India.

pegatron logo
The new facility is expected to begin production in the second half of next year or in early 2022, with more investments planned in the country over the next two years, reported India's Economic Times, citing unnamed executives.

Pegatron, Apple's second-largest iPhone assembler after Foxconn, registered its India subsidiary in July, and said that the global health crisis had made it hard for staff to visit India, which had resulted in delays. The facility would be the company's first to be established in the country, and would likely be involved in future ‌iPhone‌ assembly.

Pegatron has been cleared to take part in India's billion-dollar Production-Linked Incentive Scheme, which provides incentives on locally-produced smartphones. The Taipei-based assembler joins rival ‌iPhone‌ manufacturers Foxconn and Wistron, which are already signed up to the scheme.

Pegatron recently drew the ire of Apple after it was discovered that the ‌iPhone‌ supplier had been committing labor violations at a student workers' program at its Shanghai and Kunshan campuses in eastern China.

Apple put Pegatron on probation as a result of the violations, and while the supplier's current ‌‌iPhone‌‌ business is not expected to be affected, it could lose some iPhone 12 orders to rival Luxshare next year.

Top Rated Comments

Bokito Avatar
20 months ago

Thanks for NOTHING apple. Abandon your bread and butter customer of USA who are out of jobs and need the investment of manufacturing.
That won’t work. Manufacturing in wealthy countries isn’t competitive for quite a few reasons:

* People are more expansive (more expansive products)
* Scaling up is very hard
* There just aren’t enough people that want to work on such jobs*


* In Western Europe we import people from Eastern Europe for quite a few job categories because people in Western Europe are too lazy for them:

* Warehouse sorting
* Horticulture
* Meat industry
* Manufacturing

And many more. I think the US has the same problem finding people for those jobs.
Score: 8 Votes (Like | Disagree)
DelayedGratificationGene Avatar
20 months ago
Such potential. 1.4b people. Smart developing country eventually to be another China for Apple. Great job. Keep moving ahead in India Tim!
Score: 8 Votes (Like | Disagree)
apparatchik Avatar
20 months ago

That won’t work. Manufacturing in wealthy countries isn’t competitive for quite a few reasons:

* People are more expansive (more expansive products)
* Scaling up is very hard
* There just aren’t enough people that want to work on such jobs*


* In Western Europe we import people from Eastern Europe for quite a few job categories because people in Western Europe are too lazy for them:

* Warehouse sorting
* Horticulture
* Meat industry
* Manufacturing

And many more. I think the US has the same problem finding people for those jobs.
In the US the agricultural and construction sectors are filled with inmigrants, just to name a few. The manufacturing capacity, flexibility, input and chains are not there... its not just a matter of costs but actual feasibility.

Now, in the whole production chain, when you take into account the hardware design, such as Apple Silicon (not the manufacturing but the design), the software, the packaging design, in other words, the high paying jobs related to Apple devices, most of those are located in the US.

They outsource the cheap labor you wouldnt really want unless you’re a developing nation like India or Mexico.

Were I a US citizen I would be happy having all the high skilled jobs, time to retrain the workforce for those unemployed so they can move up in the production chain instead of expecting to be tightening screws for a living any more.
Score: 6 Votes (Like | Disagree)
monster620ie Avatar
20 months ago
Thanks for NOTHING apple. Abandon your bread and butter customer of USA who are out of jobs and need the investment of manufacturing.
Score: 6 Votes (Like | Disagree)
anthogag Avatar
20 months ago
India has an influential rising-star tech sector. They could easily make iPhones. India is a democracy. China's communist government will always undermine Western democracy.
Score: 4 Votes (Like | Disagree)
Shanpdx Avatar
20 months ago
iPhone SE and iPhone 11 was smash hit during the Diwali holidays in India.

Apple can lower the price if they are able to manufacture in India (avoiding 20% or so import duty).

I think more and more low and middle end products will be manufactured in India.
Score: 3 Votes (Like | Disagree)

Related Stories

iPhone 14 Mock pill and hole

iPhone 14 Pro Design Reportedly Finalized As Suppliers Begin Trial Production

Monday February 21, 2022 3:41 am PST by
Apple's largest supplier, Foxconn, has begun trial production of the iPhone 14 Pro, suggesting that Apple has finalized its design as it moves into the early stages of device manufacturing, according to a report from the Taiwan Economic Times. According to the report, Foxconn will manufacture the higher-end models of the iPhone 14, while Luxshare, another Apple supplier, will take on the...
iPhone 13 Dummy Thumbnail 2

Apple Supplier Luxshare Reports Record Growth After Securing iPhone 13 Orders

Wednesday August 25, 2021 2:09 am PDT by
Apple supplier Luxshare has reported record revenue and profit in the first half of 2021, thanks largely to the Chinese assembler's increasing involvement in Apple's supply chain. From a new report by Nikkei Asia: The Guangdong-based company sometimes called "Little Foxconn," which has been deepening its relationship with Apple and is assembling iPhones for the U.S. technology giant for the ...
vanarama apple car concept

Apple Suppliers Envisioning Long-Term Apple Car Supply Chain

Thursday March 3, 2022 4:43 am PST by
Apple suppliers are positioning to manufacture and assemble the company's long-rumored electric vehicle (EV), according to a report from DigiTimes. Apple Car concept render by Vanarama based on patents filed by Apple The report claims that Foxconn, the colossal manufacturer behind most iPhone models, and Luxshare Precision, the assembler behind Apple devices such as AirPods, are angling to...
chinafoxconn

Apple Supplier Foxconn Says Shortages Now Easing

Thursday February 10, 2022 5:40 am PST by
Foxconn, the biggest assembler of iPhones, today announced that the component shortages that have constrained the supply of devices over the past two years are now showing signs of easing, Bloomberg reports. The first quarter of 2022 is said to be experiencing a "major improvement" in parts shortages, and "overall supply constraints" are expected to ease in the second half of the year, a...
AppleVsFoxconn Feature 2

Apple Supplier Foxconn Forced to Suspend Operations in Shenzhen Due to Lockdown

Monday March 14, 2022 2:12 am PDT by
Apple's leading supplier, Foxconn, has been forced to suspend operations in Shenzhen, China, following a city-wide lockdown that sees nonessential businesses close, public transportation halted, and residents advised not to leave their home unless for essential activities only. As Nikkei Asia reports: Shenzhen is home to major tech companies such as Huawei, Oppo and TCL, and is also one of ...
iPhone 13 Feature Candy Corn

iPhone 13 Mass Production Set to Begin in India From February

Tuesday December 21, 2021 12:59 am PST by
Apple will see flagship iPhone 13 production begin on Indian soil early next year, courtesy of Foxconn's factory in Chennai, reports the Economic Daily News. The plans come following a reported improvement of semiconductor supply in the region, as well as a successful trial production run of the 6.1-inch iPhone 13 by Foxconn. Mass production is set to start in February, and the Foxconn...
homepod mini colors

HomePod Mini Launches in Belgium, Netherlands, and Switzerland

Friday March 25, 2022 2:45 am PDT by
Apple today started taking orders for the HomePod mini in Belgium, the Netherlands, and Switzerland for the first time, as spotted by iCulture. Apple said earlier this month that it would make the HomePod mini available to order in the above countries by the end of March, but never gave a specific release date. The speaker also gained support for languages spoken in those countries as part...
iPhone 12 Made in India

iPhone 12 Production Halted in India by Protests Over Food Poisoning

Tuesday December 21, 2021 7:26 am PST by
iPhone 12 production in India has been halted by protests over food poisoning at a Foxconn factory, Reuters reports. Foxconn's manufacturing plant near Chennai in southern India, which produces iPhone 12 models, is set to remain shut this week after protests by workers. Protestors reportedly blocked a major highway leading to the plant in response to 150 employees being admitted to hospital...

Popular Stories

apple ar headset concept 1

Apple's Headset Said to Feature 14 Cameras Enabling Lifelike Avatars, Jony Ive Has Remained Involved With Design

Friday May 20, 2022 6:50 am PDT by
Earlier this week, The Information's Wayne Ma outlined struggles that Apple has faced during the development of its long-rumored AR/VR headset. Now, in a follow-up report, he has shared several additional details about the wearable device. Apple headset render created by Ian Zelbo based on The Information reporting For starters, one of the headset's marquee features is said to be lifelike...
anker 563 dock ports

Anker's Latest USB-C Docking Station Brings Triple-Display Support to M1 Macs

Wednesday May 18, 2022 7:06 am PDT by
While Apple's early M1-based Macs can only officially support a single external display, there are ways around the limitation. Anker is launching a new 10-in-1 USB-C docking station today which delivers just that. The Anker 563 USB-C dock includes two HDMI ports and a DisplayPort port, and it leverages DisplayLink to carry multiple video signals over a single connection. Given that this hub...
apple data auction iphone privacy ad

Apple Highlights iPhone's Latest Privacy Features in New 'Data Auction' Ad

Wednesday May 18, 2022 9:00 am PDT by
Apple today shared a new ad highlighting iPhone privacy features like App Tracking Transparency and Mail Privacy Protection that are designed to give users more transparency and control when it comes to their personal data being collected. The ad revolves around a young woman named Ellie who discovers that her personal data is being sold at an auction house, with bids being placed on her...
Prosser Series 8 3

Apple Watch Series 8 Rumored to Feature New Design With Flat Display

Wednesday May 18, 2022 6:21 am PDT by
The Apple Watch Series 8 could feature an all-new design with a flat display, according to the leaker known as "ShrimpApplePro." In his latest video on the YouTube channel Front Page Tech, Jon Prosser highlighted information from ShrimpApplePro that suggests the Apple Watch Series 8 could feature a flat display in what seems to be a design originally rumored for the Apple Watch Series 7. ...
sony headphones 1

Sony's New WH-1000XM5 Headphones vs. Apple's AirPods Max

Friday May 20, 2022 12:18 pm PDT by
Sony this week came out with an updated version of its popular over-ear noise canceling headphones, so we picked up a pair to compare them to the AirPods Max to see which headphones are better and whether it's worth buying the $400 WH-1000XM5 from Sony over Apple's $549 AirPods Max. Subscribe to the MacRumors YouTube channel for more videos. First of all, the AirPods Max win out when it comes ...
iPhone 14 Purple Lineup Feature

Will the iPhone 14 Be a Disappointment?

Saturday May 21, 2022 9:00 am PDT by
With around four months to go before Apple is expected to unveil the iPhone 14 lineup, the overwhelming majority of rumors related to the new devices so far have focused on the iPhone 14 Pro, rather than the standard iPhone 14 – leading to questions about how different the iPhone 14 will actually be from its predecessor, the iPhone 13. The iPhone 14 Pro and iPhone 14 Pro Max are expected...
apple ar headset concept 2

Apple's AR/VR Headset Nearing Completion as Board Gets Demo

Thursday May 19, 2022 9:52 am PDT by
Apple last week demonstrated its upcoming AR/VR headset to Apple board members, indicating that the device is in an advanced stage of development and could see a debut in the not too distant future, reports Bloomberg. Apple has also ramped up development of the software that runs on the headset, with that software expected to be called "RealityOS," or rOS for short. Render via designer Ian ...