Taiwan-based manufacturing giants, Foxconn and Pegatron, have temporarily halted the production of Apple iPhones at their factories near Chennai in southern India due to the adverse impact of heavy rains, Reuters reported citing sources familiar with the matter.
The city of Chennai in Tamil Nadu state, a major electronics and manufacturing hub, experienced severe flooding amid heavy rains, leading to the shutdown of the airport and disrupting regular operations.
The extreme weather conditions are attributed to Cyclone Michaung, which is progressing down the coast towards the neighbouring state of Andhra Pradesh.
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“Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday,” revealed two sources familiar with the situation.
Foxconn has been actively expanding its presence in India, investing in manufacturing locations in the southern part of the country as part of Apple’s strategy to diversify production away from China.
In the quarter ending September, Apple witnessed its highest-ever quarterly shipments from India, exceeding 2.5 million units, as per data from market analytics firm Counterpoint Research.
However, the current disruption in production raises concerns about the potential impact on Apple’s supply chain and its ability to meet market demands.
This isn’t the first time Pegatron has faced production disruptions in recent months. The company had to temporarily cease iPhone assembly in September due to a fire incident at its factory.
(With inputs from Reuters)
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