Tata, Pegatron discuss iPhone assembly plans in Tamil Nadu

BENGALURU/NEW DELHI: Tata Group is in advanced talks with Taiwan’s Pegatron to form a partnership to operate iPhones that the Indian company is building in the southern state of Tamil Nadu, two sources with direct knowledge of the matter said on Thursday. Assembly plant.

Tata is building an iPhone assembly plant in Hosur, which will be the second such plant in the country. The move comes as Apple and its contract manufacturers rapidly expand their India operations.

Tata is in talks with Pegatron to form a joint venture at the Hosur plant, two sources said, which would be a first such move by Tata and would help speed up Tata’s plans to start production. The two sources declined to be named because the talks are private and the deal has not yet been completed. Not closed yet.

The Taiwanese company will provide technical and engineering support at the plant, sources said.

Pegatron did not immediately respond to a request for comment outside business hours in Taiwan. Tata and Apple did not immediately respond.

Tata’s success is crucial to Apple’s ambitions. Apple analyst Ming-Chi said the US company, which has been diversifying away from China in the wake of COVID-19 disruptions and geopolitical tensions, expects the proportion of iPhones made in India to grow this year from 12-14% in 2023 Increase to 20-25% Guo.

Tata’s new factory with Pegatron is expected to have 20 iPhone assembly lines, one of the sources said, adding that the Indian company will hold a majority stake in the joint venture.

“Tata cannot build everything from scratch,” a second source said, explaining the rationale behind the tie-up.

Tata’s first iPhone assembly plant is in the southern state of Karnataka, which Tata took over from Taiwan’s Wistron last year.

Pegatron already operates an iPhone assembly plant in Tamil Nadu and is in talks to add a second plant. Currently, the company accounts for about 10% of Apple’s iPhone production in India, with Taiwan’s Foxconn doing most of the rest.

(This story has not been edited by News18 staff and is published from a Yonhap news agency feed – Reuters)