[News] Tata Reportedly Partners with Pegatron for iPhone Assembly in India

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India’s Tata Group is reportedly in discussions with Taiwanese electronics manufacturer Pegatron to establish a joint venture, with the intention of co-managing the Apple iPhone assembly plant currently under construction in the southern state of Tamil Nadu. The partnership is anticipated to hasten the growth of iPhone production capacity in India.

According to Reuters citing industry sources, Tata, having acquired an iPhone assembly plant in the southern state of Karnataka from the Taiwanese company Wistron in 2023, has officially become part of the iPhone supply chain in India.

On the other hand, the new facility in the city of Hosur, Tamil Nadu, will be Tata’s second iPhone assembly plant in India, featuring 20 production lines, as disclosed by sources cited by Reuters.

Amid rumors that Tata Group in India is deeply engaged in discussions with Pegatron to form a strategic alliance and establish a joint venture, Pegatron did not to respond to market speculations.

Currently, approximately 10% of Apple’s iPhone production capacity in India comes from Pegatron, with the vast majority of capacity originating from Foxconn’s iPhone assembly plant located in Karnataka.

Furthermore, Foxconn has the highest share in Apple’s current new iPhone assembly. Among the four iPhone 15 series models, only certain models like iPhone15 and iPhone15 plus are produced by Tata Group in India.

An industry source has reportedly stated, “Tata cannot build everything from scratch,” He indicated that after Tata establishes a joint venture with Taiwanese firm Pegatron, Pegatron will provide technical and engineering support.

In recent years, Pegatron has been consistently expanding its global footprint, with expansions ongoing in Taiwan, Mexico, Indonesia, India, Vietnam, and other locations.

Regarding its operations in India, Pegatron announced in late October 2023 that it had invested approximately NTD 300 million (roughly USD 9.56 million) to secure leasing rights for factory premises in Tamil Nadu.

In January of this year, the Indian subsidiary announced signing a construction general contracting project to commence electromechanical engineering construction for a new plant, totaling approximately NTD 510 million (roughly USD 16.26 million). According to industry sources, Pegatron’s Indian facilities primarily focus on smartphone production at present.

(Photo credit: Apple)