Tata in talks with Pegatron to set up iPhone assembly plant in Tamil Nadu: Report

The move will likely to help Tata to speed up its plans to start iPhone manufacturing and help Apple to 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 Pegatron, Tata or Apple. Expansion in India, would serve as an opportunity for Apple to diversity its investment beyond China post Covid-19 disruptions. It would also helpt the US firm to reduce the impact of US-China geopolitical tensions on its business. The proportions of iPhone made in India are expected to reach 20-25% this year, from 12-14% in 2023, reported Reuters citing Apple analyst Ming-Chi Kuo.

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.

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

Tata’s first iPhone assembly plant is in the southern state of Karnataka which it took over from Taiwan’s 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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Published: 01 Feb 2024, 09:00 PM IST