The decision to close the factory came from Foxconn
The decision to close the plant was made by Foxconn according to a police officer from the office of the Superintendent of Police in Kancheepuram. This police officer also said that employees at the factory who have been complaining for months about food poisoning and other issues should lodge their complaints with the state labor ministry.
Apple hopes to build the iPad in India
India is the second-largest smartphone market in the world after China and the three contract manufacturers building the device for Apple, Foxconn, Wistron, and Pegatron, have budgeted $900 million over five years to make iPhone units in the country. But because India is a developing market, Apple has focused its Indian production of the iPhone on less expensive older models.
Apple also plans on building some iPad tablets in India as the country, along with Mexico and Vietnam, have become alternative supply chain centers for Apple as the company seeks to lessen its reliance on factories in China. Apple is afraid that with tensions between the U.S. and China so high, getting access to factories based on the mainland won’t always be a sure thing.
Considering that Foxconn workers, like the ones toiling for Wistron, are paying their employer for food, the fact that many of them contracted food poisoning was enough of an issue to spark the protests that shut down the highway near the factory, and the factory itself.
Apple had to get involved in last year’s riot because of the damage to the equipment at Wistron’s factory. This year, it appears that Foxconn was able to keep its production facilities intact.