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Pegatron India fire traced to workers’ failure to turn off switch -sources

People are seen outside the main gate of the Pegatron facility following a fire incident at the facility near Chennai, India, September 26, 2023. REUTERS/Praveen Paramasivam

After testing the devices as they were being put together and after an electrical switch was left on, a short-circuit caused a factory fire at iPhone manufacturer Pegatron India, according to two persons informed on the situation for Reuters.

Three days of production have been lost due to the issue at Pegatron’s (4938. TW) one facility in India, which is in the southern state of Tamil Nadu and is a major supplier to Apple (AAPL.O). It is unclear when the business will likely restart.

Pegatron acknowledged to Reuters that “a small switchboard experienced an accident” in the facility on Sunday but did not give any more information when contacted by Reuters for this article.

Pegatron said on Monday that no one was hurt in the fire, which it called a “spark incident” whose source will be investigated, and that it had little to no effect on the company’s finances and daily operations.

Apple did not answer an inquiry for comment, and it has not yet provided one. Following the event, it has communicated with Pegatron through its representatives, according to Reuters.

An industry source and a senior government source from Tamil Nadu who were informed on the situation provided specifics about what happened on Sunday. Since the subject is delicate, both talked on the condition of anonymity.

According to a state government source, workers at the Pegatron facility assemble roughly 70 iPhone components before charging the batteries at a charging rack to 50% before installing software.

The insider claimed that a switch on one of these racks was left on beyond the conclusion of the night shifts on Saturday, which led to overheating and, finally, a spark that ignited a foam sheet intended to shield new cell phones from scratches.

A government source claimed that even though the next day was a vacation and there were few maintenance personnel on duty, the “fire could have been nipped in the bud had there been more workers in the facility.”

According to a firsthand source in the smartphone business, the charging racks at the Pegatron facility are regularly turned off after three Saturday shifts conclude early on Sundays.

According to fire official V. Veeraraghavan, firefighters rushed to extinguish the flames in response to a report received at around 8:50 on Sunday. Images on domestic television showed the factory emitting black smoke.

According to the government source and another person with firsthand information who requested anonymity, several devices were damaged by the fire. The official from the government estimated that six machines were broken, although he did not specify which kind.

At the Pegatron factory in Chengalpattu, which covers an area of 39,000 square meters (420,000 square feet), about 8,000 employees work on the assembly line. It assembles more traditional models but does not produce the iPhone 15.

According to a sign posted outside, the factory produces 5 million phones annually, making up 10% of Apple’s India manufacturing, most of which is produced at Foxconn plants in south India.

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