All eyes are on Apple's two Indian subcontractors, Foxconn and Pegatron, in the wake of violence at third-party manufacturer Wistron's Karnataka unit. Following the riot at the Wistron factory in Narasapura (60 km from Bengaluru), Apple warned the company and it also emerged that Wistron had not paid its workers properly and that a local labor transgression had occurred. While Apple is considering moving its manufacturing bases from China for various reasons, and the Indian government itself has placed great emphasis on Apple's iPhone assemblers in India, the problem at Wistron's unit was taking its toll. most important ramifications. However, reports suggest that Foxconn and Pegatron appear unmoved by Wistron's woes. In any case, both companies seem prepared to take advantage of the situation.
Pegatron factory in Mahindra World City near Chennai
Pegatron is on track to start investment project in India, says president #chairman #ICTmanufacture #India #Indonesia #investment #IT #CE #Pegatron #plant #SouthAsia #Tesla #Tung #Vietnam #Wistron #DIGITIMES https: // t.co/ RABmAHlRqK pic.twitter.com/3276B3gnq2 December 16, 2020 Taiwanese media reports that Pegatron has confirmed the news that it has registered a company in Chennai as a subsidiary. Construction work at Pegatron's Mahindra World City factory near Chennai is underway and is expected to be completed in one to two months. Pegatron is Apple's second largest contract manufacturer and is reportedly committed to investing close to Rs 11,00 crore over the next five years in India. Pegatron is now looking for another plot of land in Tamil Nadu or Andhra Pradesh to set up its second Indian factory. If construction goes according to plan, Pegatron can begin commercial production in June 2021 at the earliest. Despite the unrest at the Wistron plant, Pegatron is on track to increase investments in India, according to the company's president, TH Tung.
Overzealous Foxconn
Foxconn India's story is no different. Foxconn plans to expand its factory in Sriperumbudur (Tamil Nadu). This makes the iPhone XR and iPhone 11 individual. Its chairman, Liu Young-Way, said it was "moving forward" and investing more in India. Foxconn operates two factories in India, one in Sriperumbudur in Tamil Nadu and one in Narsapur in Andhra Pradesh (different from Narasapur in Karnataka). The Sriperumbudur factory makes Apple's iPhone XR and iPhone 11, while its Narsapur factory makes smartphones for Xiaomi Corp in China, among others. The Taiwanese electronics maker announced in July that it would invest up to $6.000 billion to expand its Sriperumbudur plant. The expansion plans are expected to take place over three years and create around XNUMX new jobs.
Apple's plans don't give much
Wistron, meanwhile, appears to be in trouble as Apple put it on probation and said on Saturday it would not grant new cases to the Taiwanese contractor until it commented on how the workers were doing. processed at the Narasapura plant. Initial findings of an Apple audit after the violence at the Wistron plant showed violations of its "Supplier Code of Conduct." Contract workers angry over unpaid wages destroyed property, equipment and iPhones on December 12, causing Wistron huge losses and forcing the factory to shut down. Apple said Wistron failed to implement proper time management processes, "resulting in late pay for some workers in October and November." In a much-anticipated move, Wistron has also suspended work at its violently tarred Narasapura factory. < p lang="en" dir="ltr">Wistron on Apple Probation: - Investigation is ongoing - Will work with customer in terms of correcting issues and resuming operations - Since the Narasapura facility is an operation new and the shipment quantity is low, the incident will not have a significant impact on Wistron https: // t.co/5bP4eAIeTV Dec 21, 2020 Wistron, for its part, admitted that some workers at the Narasapura factory in Karnataka they had not been paid properly or on time, and that it was removing its vice president to oversee its operations in India. Wistron said it is restructuring its teams and setting up 24-hour hotlines for employees to submit anonymous complaints. Apple began assembling its first iPhone model in India through Wistron in 2017. It has now ramped up its assembly operations, along with Foxconn and Pegatron. Thanks to these two suppliers, Apple's plans to expand into India, a market it has capitalized on to expand its manufacturing base beyond China, won't suffer much. India had also switched to damage control mode to save its highly publicized "Make in India" campaign.