Two Apple suppliers to sign deals with India in Tamil Nadu

Pegatron and Tata Electronics will employ more than 30,000 people in the state.

What you need to know

• Two more Apple suppliers are expected to sign deals to bring manufacturing of Apple products to India.
• Both Pegatron and Tata Electronics will employ over 30,000 people combined in the first phase of the move.

Two Apple suppliers including major player Pegatron are expected to sign deals to bring manufacturing and more than 30,000 jobs to the state of Tamil Nadu in India.

According to Times of India:

Tamil Nadu is set to start 2021on a positive note on the industrial investments front by signing two major MoUs, among others, in the electronics manufacturing segment in January. The state is expected to formalize agreements with Taiwan-based Pegatron and Tata Electronics around Pongal festival to facilitate establishing units to manufacture Apple products, multiple sources said.

The report says that Pegatron has chosen Mahindra City as the site of its first India venture, where it will employ 14,000 people. It also has plans for a second phase where it will double its investment of Rs1,200 crore as well as its employment potential.

Tata Electronics has already started work construction a plant near Hosur in the Krishnagiri district, worth Rs5,000 crore and employing 18,000 people. The combined efforts are worth roughly $850 million US in investment. One official noted that "nothing has been finalized yet", according to the report the agreements may be formalized by the end of next week.

Several Apple manufacturers including Foxconn and Wistron have already onshored manufacturing to India driven by generous government subsidies paid if they meet certain manufacturing targets. Recently a Wistron factory in Karnataka was the scene of a violent riot following allegations workers had not been paid properly or on time. Emerging reports suggest a series of labor violations and the supplier has been put on probation by Apple.

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