Tata Group to partner with Pegatron for iPhone manufacturing in Tamil Nadu: Report

Tata Group with Pegatron: Tata Group is reportedly in advanced discussions with Taiwan's Pegatron for a potential partnership in operating an iPhone assembly plant being constructed by the conglomerate in Hosur city, located in the southern state of Tamil Nadu. 

According to sources familiar with the matter, Tata aims to accelerate its manufacturing plans by establishing a joint venture with Pegatron, marking its first such collaboration. The Taiwanese company is expected to contribute technical and engineering support to the facility.

The negotiations, currently in a private stage, have not been finalised, and both Pegatron and Tata, along with Apple, have not provided immediate responses to media inquiries.

The success of Tata's venture is significant for Apple, as the tech giant seeks to diversify its production beyond China amid disruptions caused by the COVID-19 pandemic and geopolitical tensions. Analysts anticipate that the proportion of iPhones manufactured in India could reach 20-25% in the current year, up from 12-14% in 2023.

The upcoming plant, a collaboration between Tata and Pegatron, is projected to feature 20 assembly lines dedicated to iPhones, with Tata holding a majority stake in the joint venture. The partnership is seen as a strategic move for Tata, allowing it to leverage Pegatron's expertise rather than building the entire operation independently. This initiative aligns with Apple's broader strategy of expanding its manufacturing capabilities in India.

Tata Group's first iPhone assembly plant is located in the southern state of Karnataka, a facility it acquired from Taiwan's Wistron in the previous year. 

(With Reuters inputs)