Tata Group is in advanced talks with Taiwan's Pegatron to form a partnership to run an iPhone assembly in the country.

Tata and Pegatron Engage in Discussions Regarding iPhone Assembly Plans in Tamil Nadu

BENGALURU/NEW DELHI: Tata Group is in advanced talks with Taiwan’s Pegatron to form a partnership to run an iPhone assembly plant built by the Indian company in the southern state of Tamil Nadu, two sources with direct knowledge of the matter said on Thursday.

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

Tata is in talks to set up a joint venture with Pegatron at the Hosur plant – its first such initiative – which would help speed up its plans to start production, said two sources, who declined to be named because the talks are private and the deal is confidential. is not closed.

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

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

Tata’s success is crucial to Apple’s ambitions. According to Apple analyst Ming-Chi, the U.S. company has diversified outside of China due to the COVID-19 disruptions and geopolitical tensions, and the share of iPhones made in India is expected to rise to 20-25 percent this year, up from 12-14 percent in 2023. Die.

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

“Tata cannot build everything from scratch,” said another source, explaining the background to the tie-up.

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

Independently, Pegatron already has an iPhone assembly plant in Tamil Nadu and is in talks to add another plant. It currently accounts for around 10% of Apple’s iPhone production in India, while Taiwan’s Foxconn makes up most of the rest.