NEW DELHI – Violence at a Wistron Corp factory in southern India is likely to stall the company’s and its client Apple Inc’s drive to expand local manufacturing while forcing the government to redouble efforts to encourage foreign investors.
wages, destroyed equipment and vehicles at a Wistron plant in southern India on Saturday, causing an estimated $60 million in damages.
The Taiwanese company, one of Apple’s top suppliers, had been hiring in significant numbers at the plant that became operational earlier this year.
It assembled the second-generation iPhone SE there and was expected to start producing newer models, but the violence has led the company to shut the site and file a police complaint against more than 5,000 contract workers for the destruction of property.
Wistron has not disclosed details, but one source familiar with the situation, speaking on condition of anonymity, said the area where smartphones are assembled and lines where delicate components, such as printed circuit boards, are mounted, have been damaged.
The company did not respond to a request for comment from Reuters. It
said in a regulatory filing in Taiwan that it was doing its best to get the
plant running again.
Apple also did not respond to a request for comment.
Two sources close to the situation, who asked not to be named because
they were not authorised to speak to the press, said restarting could be
“It disrupts business for Wistron massively,” one of the sources said.