Apple supplier Foxlink unlikely to resume full India operations for two months-source (updated)

CHENG UEI PRECISION INDUSTRY

28/02/2023 08:12

(Adds details)
    By Praveen Paramasivam and Munsif Vengattil
       CHITTOOR, India, Feb 28 (Reuters) - Apple  AAPL.O 
supplier Foxlink's factory in southern India is unlikely to
resume full operations for two months after a fire incident,
raising concerns of supply chain disruptions for the iPhone
maker, a source with direct knowledge told Reuters on Tuesday.
    The facility in India's Andhra Pradesh state, where Foxlink
makes charging cables for iPhones, was engulfed in a massive
fire on Monday that led part of the building to collapse to the
ground. There were no casualties.
    A source with direct knowledge said that Foxlink operates a
total of 10 assembly lines in two separate facilities at the
plant in Andhra, of which four were completely damaged and
unlikely to resume operations for two months.
    The remaining six assembly lines will resume operations
later this week as even though they were unaffected by the fire
incident, they cannot be operated due to damage to IT servers.
    A second source familiar with the developments said that
Foxlink was a key supplier for Apple in India, and "there could
be potential supply chain disruptions for iPhones made in India
or shipped from India."
    Apple and Foxlink did not immediately respond to requests
for comment. The root cause of the incident is still being
investigated, the first source added. 
    

    

 (Reporting by Munsif Vengattil and Aditya Kalra in New Delhi,
and Praveen Paramasivam in Tirupati, Editing by Louise Heavens)
 ((munsif.vengattil@thomsonreuters.com;))