Tata Group is reportedly in advanced discussions with Taiwan’s Pegatron to establish a partnership for running an iPhone assembly plant currently under construction in Hosur, Tamil Nadu, according to a report in Reuters.
The plant in Hosur will be Tata’s second iPhone assembly facility in India, aligning with Apple’s and its contract manufacturers’ expanding operations in the country.
The potential joint venture between Tata and Pegatron would mark a significant initiative for Tata, providing accelerated support for its manufacturing plans. The Taiwanese company, Pegatron, is anticipated to contribute technical and engineering assistance to the plant, as per the sources.
The success of Tata’s endeavours is crucial for Apple’s broader objectives. Apple has been diversifying its manufacturing beyond China due to disruptions caused by COVID-19 and geopolitical tensions. The proportion of iPhones manufactured in India is expected to increase from 12-14 per cent in 2023 to 20-25 per cent this year, according to Apple analyst Ming-Chi Kuo.
The proposed joint venture between Tata and Pegatron is expected to feature 20 assembly lines for iPhones, with Tata holding a majority stake in the collaboration. The move is seen as a strategic partnership, allowing Tata to leverage Pegatron’s expertise, as explained by one of the sources, stating, “Tata cannot build everything from scratch.”
Tata’s initial iPhone assembly plant, acquired from Wistron in Karnataka last year, was its first foray into iPhone manufacturing. Independently, Pegatron already operates an iPhone assembly plant in Tamil Nadu and is exploring the possibility of adding a second facility. Currently, Pegatron contributes approximately 10% of Apple’s iPhone output in India, with the majority handled by Taiwan’s Foxconn.
(With inputs from agencies)
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