Tata Group is currently engaged in advanced discussions with Taiwan’s Pegatron to establish a collaborative venture for running an iPhone assembly facility in Hosur city, Tamil Nadu, according to sources familiar with the matter. This marks Tata’s second iPhone assembly plant in India as part of its ongoing efforts to expand manufacturing operations in the country.
The Hosur plant, currently under construction, is poised to become a key manufacturing hub for iPhones. In an attempt to expedite the manufacturing process, Tata is negotiating a joint venture with Pegatron, a significant player in the electronics manufacturing sector. The partnership aims to leverage Pegatron’s technical and engineering expertise to enhance the efficiency of the assembly plant.
Although the talks are still in the private domain, the collaboration is seen as a strategic move by Tata to bolster its capabilities in iPhone manufacturing. The joint venture would not only accelerate Tata’s production plans but also establish a foothold for Pegatron in the growing Indian market.
Pegatron, based in Taiwan, is expected to contribute crucial technical support to the plant. However, the company has not yet issued an official statement regarding the partnership discussions. Similarly, Tata and Apple have refrained from immediate comments on the matter.
The success of Tata’s endeavors is important to Apple’s broader strategy of diversifying its manufacturing operations beyond China. Apple’s response to disruptions caused by the COVID-19 pandemic and escalating geopolitical tensions has led to an increased focus on India. The proportion of iPhones manufactured in India is projected to rise substantially from 12-14% in 2023 to 20-25% this year, according to insights from Apple analyst Ming-Chi Kuo.
The new plant, a joint venture between Tata and Pegatron, is anticipated to feature 20 assembly lines dedicated to iPhones. Sources reveal that Tata will retain a majority stake in the collaborative venture, underscoring the company’s commitment to driving the success of the project.
The rationale behind Tata’s decision to collaborate with Pegatron lies in the recognition that building everything from scratch would be a time-consuming process. The joint venture is positioned as a strategic move to harness the strengths of both companies and create a more streamlined and efficient manufacturing process for iPhones.
It’s noteworthy that Tata’s first iPhone assembly plant, acquired from Taiwan’s Wistron in Karnataka last year, set the stage for the company’s foray into iPhone manufacturing. Simultaneously, Pegatron is already operating an iPhone assembly plant in Tamil Nadu and is exploring possibilities for a second facility. Currently contributing around 10% of Apple’s iPhone output in India, Pegatron competes with Taiwan’s Foxconn, which dominates the majority of Apple’s manufacturing operations in the country.
As the discussions progress, the partnership between Tata and Pegatron is poised to play a significant role in shaping the landscape of iPhone manufacturing in India, further solidifying the country’s position as a crucial hub for Apple’s global operations.