Apple Inc AAPL supplier Pegatron has leased half a million square feet of space in an industrial park in Chennai to set up new manufacturing facilities, India's Financial Express newspaper reported Thursday (tocal time).
What Happened: The move comes as part of the Taiwanese supplier's plan to invest $150 million to set up an iPhone production facility in India.
The leased space would be used for Apple-related operations, local government sources told the Financial Express.
In November, Apple put Pegatron on probation over labor violations in mainland China.
Why It Matters: Fellow Taiwanese Apple supplier Wistron’s operations in India were rocked by protesting workers last month.
See Also: Apple Supply Chain Hit At Critical Time By Workers Demanding Their 'Blood And Sweat Money' Back
The violent workers claimed they had been brutally exploited and worked in “sweatshop like conditions.”
Sources told the Financial Express that the Wistron protest would have played a role in the company choosing adjacent Tamil Nadu state for building its facilities.
The state is a large mobile handset manufacturing hub and plays host to Nokia Corporation NOK, Samsung, Lenovo Group Limited LNVGY subsidiary Motorola, Hon Hai Precision Industry Co., Ltd HNHPF also known as Foxconn and BYD Company Limited BYDDF among others.
Price Action: Apple shares closed nearly 3.3% higher at $132.03 on Wednesday and gained 0.73% in the after-hours session.
Read Next: Apple Car Could Be Made By Kia In US: Report
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