Second-Largest iPhone Assembler Pegatron Registers Subsidiary in India
In a move that sets the stage for Apple to diversify its supply chain amid the ongoing US-China tensions, the second-largest iPhone assembler Pegatron has registered a subsidiary in India and is currently in discussions with multiple state governments to find land to set up its factories (via The Economic Times).
“Pegatron has registered its India subsidiary in Chennai,” said a person familiar with the matter, adding that the company will begin importing plant and machinery once the discussions with the government officials are completed.
Pegatron CEO Liao Syh-jang had said during an investor call in March that the company would expand its overseas production facilities depending upon the client’s wishes and incentives offered by the governments abroad.
India is hoping to attract companies that are looking for alternative manufacturing bases and the government in April launched a slew of incentives including a Rs 41,000-crore production linked incentive (PLI) programme to incentivise large electronic manufacturers to set up production bases in the country.
The over $45-billion Taiwanese contract manufacturer is one of three global makers of iPhones for Apple. The other two, Wistron and Foxconn, are already operating in India.
Meanwhile, China’s Luxshare has just purchased a key iPhone assembly plant from Wistron to challenge Taiwanese rivals Foxconn and Pegatron.