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
24 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
24 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
24 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
24 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
24 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
24 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

iphone 14 pro max vs 13 max 2

Camera Comparison: iPhone 14 Pro Max vs. iPhone 13 Pro Max

Thursday September 29, 2022 7:44 am PDT by
The iPhone 14 Pro and Pro Max introduce some major improvements in camera technology, adding a 48-megapixel lens and low-light improvements across all lenses with the new Photonic Engine. We've spent the last week working on an in-depth comparison that pits the new iPhone 14 Pro Max against the prior-generation iPhone 13 Pro Max to see just how much better the iPhone 14 Pro Max can be. Subscrib ...
maxresdefault

Apple Responds to Video Testing Crash Detection Feature With Junkyard Vehicles

Friday September 30, 2022 9:11 am PDT by
The Wall Street Journal's Joanna Stern recently traveled to Michigan to test Apple's new crash detection feature on the iPhone 14 and Apple Watch Ultra. In response, Apple provided some additional information about how the feature works. Stern recruited Michael Barabe to crash his demolition derby car with a heavy-duty steel frame into two unoccupied vehicles parked in a junkyard — a 2003...
iphone 14 iphone 14 plus in hand feature

iPhone 14 Is Secretly Hiding a Beloved Mac Feature

Friday September 30, 2022 3:24 am PDT by
The iPhone 14 and iPhone 14 Pro models bring over a longstanding Mac feature, but the setting to enable it is off by default. The feature, which is actually a new accessibility option, allows the iPhone to play a startup chime like the Mac. When enabled, the sound comes alongside a new shutdown chime. The Mac has featured a startup chime since 1987's Macintosh II, and the iconic "bong"...
adaptive transparency airpods pro

iOS 16.1 Beta Brings Adaptive Transparency to Original AirPods Pro

Thursday September 29, 2022 1:08 pm PDT by
The third beta of iOS 16.1 that was released earlier this week expands the Adaptive Transparency feature introduced with the second-generation AirPods Pro to the original AirPods Pro. As noted on Reddit, first-generation AirPods Pro owners who also have the AirPods beta software will now see an "Adaptive Transparency" toggle in the AirPods section of the Settings app. The 5A304A beta...
iOS 16 Wallpaper Spectrum Feature

Five Wallpaper Apps to Check Out for iOS 16's New Lock Screen Depth Effect

Thursday September 29, 2022 9:08 am PDT by
One of the biggest new features in iOS 16 is a completely redesigned iPhone Lock Screen. The new Lock Screen is entirely customizable, letting you change the colors and fonts, add widgets and new wallpapers, and more to make your iPhone uniquely yours. Of course, even before iOS 16, you could customize your Lock Screen with a wallpaper of your choice. iOS 16 takes the Lock Screen wallpaper...
tony blevins car

Apple Procurement VP Departs Company After Vulgar TikTok Comment

Thursday September 29, 2022 12:38 pm PDT by
Tony Blevins, Apple's vice president of procurement, is set to depart the company after he made a crude comment about his profession in a recent TikTok video, reports Bloomberg. Blevins was in a video by TikTok creator Daniel Mac, who was doing a series on the jobs of people he spotted with expensive cars. After seeing Blevins in an expensive Mercedes-Benz SLR McLaren, Mac asked Blevins what ...
tim cook malala

Tim Cook: Not Too Long From Now, You'll Wonder How You Led Your Life Without AR

Thursday September 29, 2022 7:26 am PDT by
Speaking at Università Degli Studi di Napoli Federico II in Naples, Italy, Apple CEO Tim Cook said that not too long from today, people will wonder how they led a life without augmented reality, stressing the "profound" impact it will have on the not so distant future. At the university, Cook was awarded an Honorary Degree in Innovation and International Management and also sat down for a...
Hero0005

Best Apple Deals of the Week: M2 MacBook Air Hits New All-Time Low Price at $1,049, Plus Sales on AirPods Pro and More

Friday September 30, 2022 9:05 am PDT by
This week's best Apple deals focus on the AirPods Pro, AirPods Pro 2, and M2 MacBook Air, including numerous all-time low prices on these devices. You'll also find up to 50 percent off discounts on Anker and Eufy accessories on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us...
zuckerberg metaverse

Apple CEO Tim Cook: 'I'm Not Really Sure the Average Person Can Tell You What the Metaverse Is'

Friday September 30, 2022 12:51 pm PDT by
Apple CEO Tim Cook has been touring Europe this week, sitting down for interviews with various media publications. Augmented reality has been a running theme in Cook's discussions, and it is a topic he brought up again in an interview with Dutch publication Bright, which is part of RTL News. "I think AR is a profound technology that will affect everything," Cook said, echoing comments from...
ipad pro m1 feature

Gurman: Apple Event This October Remains Unlikely, No Touch ID for iPhone 15

Sunday October 2, 2022 6:41 am PDT by
Apple is developing new iPad Pro, Mac, and Apple TV models, and at least some of these products will be released in October, according to Bloomberg's Mark Gurman. However, Gurman continues to believe that Apple is unlikely to hold an event this month. In the latest edition of his Power On newsletter, Gurman said "the big iPhone 14 unveiling last month was probably it for Apple in 2022 in...