iPhone manufacturer Pegatron in talks to lease new factory in India, report claims

Apple manufacturer Pegatron is reportedly in talks to lease its second factory in India, where sources claim the supplier will produce iPhones for Apple as part of a wider push to move assembly of Apple products out of China and into India, reports Reuters.

It is said that Pegatron is planning to add a second facility near the southern city of Chennai in Tamil Nadu state, just six months after opening the first with an investment of $150 million.

Pegatron currently accounts for 10% of Apple’s iPhone production in India, with Reuters saying talks for starting a second Pegatron facility on lease are ongoing and it will be located inside Mahindra World City near Chennai, just around where the company inaugurated the first plant in September 2022.

It has heavily been reported that Apple is ramping up its efforts to move more iPhone production out of China, with India and Vietnam being the two countries chosen to takeover the manufacturing and product assembly, with India expected to triple its production of iPhones over the next two years.

Apple currently has its top three manufacturing partners making smartphones in India. These are Wistron, Foxconn, and Pegatron. The company has slowly been expanding its manufacturing efforts in India over recent years, with the country assembling low quantities of the iPhone 14, as well as some older iPhone models, including the iPhone 13 and iPhone SE.

Reports have previously suggested that Apple is aiming to produce 25 percent of all iPhones in India by 2025, with trade tensions between the U.S. and China a key driving force between the move.