Tata in talks with Pegatron to set up iPhone assembly plant in Tamil Nadu: Report
Tata Group is in advanced talks with Pegatron to form a joint venture for a second iPhone manufacturing unit in Tamil Nadu, India.
Tata Group is in advanced talks to form a joint venture with Taiwan firm Pegatron to set up its second iPhone manufacturing unit in Hosur City, Tamil Nadu, Reuters reported citing two sources aware of the matter.
The move will likely help Tata to speed up its plans to start iPhone manufacturing and help Apple expand its operations in India. The Taiwanese firm would provide technical and engineering support at the Hosur plant, the sources told Reuters.
Till now, there has been no official announcement by Psegatron, Tata or Apple. Expansion in India would serve as an opportunity for Apple to diversify its investment beyond China post Covid-19 disruptions. It would also help the US firm to reduce the impact of US-China geopolitical tensions on its business. The proportions of iPhones made in India are expected to reach 20-25% this year, from 12-14% in 2023, reported Reuters citing Apple analyst Ming-Chi Kuo.
About Tata's Hosur assembly unit
The new assembly plant with Pegatron is expected to have 20 lines for iPhone assembly, one of the sources told Reuters. The majority of the stake in the joint venture assembly plant will be owned by the Tata group.
Tata's new plant with Pegatron is expected to have 20 lines for iPhone assembly, one of the sources said, adding that the Indian firm would hold a majority stake in the joint venture. Elucidating on the idea behind collaboration with another firm, another source said, “Tata cannot build everything from scratch.”
Currently, Tata runs its single iPhone assembly plant in Karnataka. The iPhone assembly unit was earlier owned by Taiwan Wistron last year.
Independently, Pegatron already operates an iPhone assembly plant in Tamil Nadu and is in talks to add a second facility. It currently accounts for about 10% of Apple's iPhone output in India, with Taiwan's Foxconn accounting for most of the rest.
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