Although experts predict a potential reopening within weeks, Tata Electronics’ iPhone components plant has suspended production indefinitely after the fire incident, which might lead Apple to go elsewhere to secure its supply chain.
On Monday, Tata Electronics officials announced that production at its Hosur facility in Tamil Nadu, which manufactures components for Apple iPhones, will be halted indefinitely following a fire incident. Measures are being taken to mitigate any additional damage from the incident.
The plant produces essential back panels and other components for iPhones. Additionally, another building within the same complex is scheduled to begin iPhone assembly by the end of the year, but its current status following the incident remains unclear.
According to a report by the Economic Times, if the plant does not become operational soon, Apple may turn to China for iPhone enclosures. Industry experts anticipate that the plant could reopen within a few weeks, which is vital for sales during the upcoming festive season.
The report predicted that while Apple’s manufacturers have sufficient inventory, they might temporarily source smaller components from local suppliers.
Where the cause of the fire has not yet been determined, M. Velu, a district fire officer, informed Reuters via telephone that fire engines had been positioned at the plant due to the possibility of a subsequent fire or smoke arising from the removal of the collapsed sheds.
The incident occurred early on Saturday, resulting in minor injuries to 10 individuals and causing a suspension of production. It marks the latest disruption to Apple’s iPhone supply chain in India, occurring when the tech giant seeks to reduce its reliance on China and views India as a crucial growth market.
Apple has not commented on the incident, while Tata has stated that the cause of the fire is being investigated. They also assured that the emergency protocols at the plant helped keep their employees safe. On Monday, rescue teams were still working to clear the debris, while officials faced challenges with inspections due to the extensive damage.
Shilpa Prabhakar Satish, a senior health official in India who visited the site, informed Reuters that the plant had been “severely damaged” and had no visibility inside. She further noted that the structure was collapsing and the roof was falling in, making it unsafe for anyone to enter.
Tata Electronics, which is part of the $165 billion Tata Group that spans various industries from salt to software, is a key supplier for Apple in India, alongside Taiwan’s Foxconn.
