Tata, Pegatron in talks for iPhone assembly plant in Tamil Nadu

Tata Group is in advanced talks with Taiwan’s Pegatron to form a partnership to run an iPhone assembly plant that the Indian company is building in Tamil Nadu. Tata is building the iPhone assembly plant in Hosur city, which will be its second such facility in the country, the first being the Karnataka facility that was taken over from Wistron.

The move comes as Apple and its contract manufacturers are rapidly expanding their India operations. It would also help the US firm to reduce the impact of US-China geopolitical tensions on its business. The proportions of iPhones made in India are expected to reach 20-25% this year, from 12-14% in 2023

The proposed plant is expected to accommodate around 20 assembly lines and aims to employ around 50,000 workers within the next two years. The site is likely to be operational within 12-18 months.

This comes in the wake of Tamil Nadu signing investment pacts worth more than $4.39 billion with firms such as Apple suppliers Tata Electronics and Pegatron, as well as auto major Hyundai Motors.

This joint venture between Tata and Pegatron could help Tata speed up the process and enhance its standing as an iPhone manufacturer. The move also aligns with the Indian government’s ‘Make in India’ initiative, which aims to attract foreign investment and create jobs in the manufacturing sector.