Tata in talks with Taiwan’s Pegatron for iPhone plant in Tamil Nadu: Report

Indian conglomerate Tata Group is in talks with Taiwanese electronics manufacturer Pegatron to establish an iPhone assembly plant in the southern state of Tamil Nadu, reported Reuters. 

According to undisclosed sources familiar with the matter, Tata is actively negotiating a joint venture with Pegatron for the upcoming facility in Hosur, marking the conglomerate's initial foray into such collaborations. The partnership aims to advance Tata's manufacturing plans.  

The proposed collaboration involves Pegatron providing crucial technical and engineering support for the Hosur plant, according to the report. 

Tata is constructing an iPhone assembly plant in Hosur city that will be the company's second facility of this kind in India. 

This strategic move aligns with Apple's broader initiative, along with its contract manufacturers, to expand their operations in India. 

Amidst disruptions caused by Covid-19 and escalating geopolitical tensions, Apple has been diversifying its production beyond China. Analyst Ming-Chi Kuo, cited by Reuters, predicts that the proportion of iPhones manufactured in India will increase to 20-25% in the current year, up from 12-14% in 2023. 

The upcoming Tata-Pegatron plant is anticipated to feature 20 assembly lines dedicated to iPhone production, with Tata holding a majority stake in the joint venture, according to one of the sources. 

Tata's initial venture into iPhone assembly took place in Karnataka when it acquired a facility from Taiwan's Wistron last year. 

Simultaneously, Pegatron independently operates an iPhone assembly plant in Tamil Nadu and is actively exploring the possibility of establishing a second facility. Currently, Pegatron contributes approximately 10% of Apple's iPhone output in India, with the majority handled by Taiwan's Foxconn.