One of Apple’s contract manufacturers – Pegatron has reportedly registered a subsidiary in India. According to The Economic Times, Pegatron has registered its subsidiary in Chennai, Tamil Nadu.

Pegatron is a Taiwanese electronics company that specializes on manufacturing computing, communications, and consumer electronics. Notably, Pegatron is Apple’s second-largest contract manufacturer.

“Currently, the company’s officials are in discussions with multiple state governments to find land to set up factories after which they would import plant and machinery,” one of the officials familiar with the matter told ET.

In fact, the move is seen as a step to reduce Apple’s reliance on China for its manufacturing needs. Moreover, Apple’s other major manufacturers – Wistron and Foxconn already have operations in the country.

Wistron and Foxconn are also planning to expand their operations in India in an attempt to retain their current share of assembly orders. The combined efforts may help India emerge as one of the top iPhone manufacturing countries in the world.

As reported in May, Apple is planning to shift nearly a fifth (~20 percent) of its production from China to India. The previous report suggests that Apple could produce iPhones worth up to $40 billion via the company’s contract manufacturers Wistron and Foxconn. Pegatron’s entry to the scene may boost the overall output in terms of production.

Meanwhile, India announced its Rs.50,000 Crore plan to boost electronics manufacturing last month. This includes schemes like the Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Modified Electronics Manufacturing Clusters (EMC 2.0).