Credible sources said that Foxconn and Pegatron had temporarily halted iPhone production in Chennai, southern India, on Monday due to severe rains and Cyclone Michaung.
The city of Chennai in Tamil Nadu state, renowned as a vital hub for electronics and manufacturing, experienced torrential rains, leading to significant flooding. The adverse weather conditions also prompted the shutdown of the city's airport and resulted in the submerging of vehicles.
As Cyclone Michaung progressed down the coast toward the neighboring state of Andhra Pradesh, concerns about safety and operational disruptions compelled Foxconn and Pegatron to suspend their iPhone assembly lines, according to a Reuters report.
Foxconn, boasting a workforce of approximately 35,000 at its Tamil Nadu iPhone factory, is currently deliberating whether to resume production on Tuesday, according to insights provided by two sources familiar with the matter.
This aerial photo shows a Foxconn logo on a building in Tucheng District, New Taipei City on May 6, 2022.
This marks the second instance in recent months where Pegatron was prompted to halt its factory operations. Previously, the company temporarily ceased the assembly of iPhones in September due to a fire incident.
Foxconn Expanding Operations in India
The pause in Apple iPhone manufacturing in India follows Foxconn's announcement of a $1.54 billion investment in the country, in line with the firm's expansion strategy amid South Asian revenue growth. The investment aims to address the operational requirements of Foxconn and aligns with the tech company's commitment to double its workforce and investment in India by the next year.
In November, Chinese tax authorities imposed a 20,000-yuan ($2,800) fine on a subsidiary of Foxconn Technology Group. The penalty is related to the overstatement of expenses by the Foxconn Industrial Internet Co. unit in Wuhan, central China, particularly in the accounting of research and development expenses during 2021 and 2022.
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The broader investigation into Apple's major supplier involves examining tax affairs in the southern provinces of Guangdong and Jiangsu, alongside scrutiny of land use in Hubei and Henan, where a significant portion of iPhones are manufactured. According to Bloomberg, this regulatory scrutiny comes as many overseas corporations, including Apple, navigate challenging Chinese business climates.
Foxconn Founder Terry Gou Withdraws Taiwan Presidential Bid
In a recent development, Foxconn founder Terry Gou recently withdrew from Taiwan's presidential election. While not specifying the reason for the retreat, Gou affirmed his commitment "to the future of the Republic of China," Taiwan's official name.
Terry Gou, who stepped down from Foxconn's board in August, withdrew from the presidential race a day after his attempt to form a joint ticket with opposition candidates collapsed on live television. Despite a shared goal of defeating the ruling Democratic Progressive Party, the Gou consistently lagged in the polls, as per a CNN report.
The presidential election in Taiwan will be held on January 13, 2024.
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