The Tata Group, an Indian conglomerate, and Pegatron Corporation (4938.TW), a Taiwanese electronics manufacturer, are reportedly discussing a partnership to operate an iPhone assembly plant in the Indian state of Tamil Nadu. This follows the exponential escalation of Apple Inc’s (AAPL) manufacturing operations in India.
Whispers of partnership between Tata Group and Pegatron to run iPhone assembly plant
Hosur, a city in Tamil Nadu, will be home to India’s second iPhone assembly plant after Tata completes construction. The first, Taiwan’s Foxconn Chennai plant, started the commercial production of the iPhone 15 in September 2023.
According to Reuters, two sources close to the matter indicated that Tata and Pegatron are considering a joint venture to expedite the Hosur plant’s readiness to start production. However, nothing has been made official or public to date, and no comments have been forthcoming from Tata, Pegatron or Apple.
A conference call announcing Apple’s Q1 results for its 2024 fiscal year is scheduled for later today, 1 February 2024. Economists regard Tata’s success with the Indian manufacturing plant as key to the tech giant’s future financial growth.
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After the pandemic and geopolitical stresses with China, Apple investigated alternative production locations. Reuters reported that Apple analyst Ming Chi Kuo indicated that the company expects India’s production to be between 20% and 25%, which is quite a surge from its 2023 rates of between 12% and 14%.
Pegatron already runs an Apple assembly plant in Tamil Nadu and has commenced talks to start a second. The new Hosur plant will allegedly feature 20 manufacturing lines and Tata would retain the larger stake in the venture.
