Micromax Explores JV To Join AI & Electronics Bandwagon

With new age businesses picking up momentum in India, Micromax cofounder Rahul Sharma is reportedly looking to enter the burgeoning AI hardware space in a joint venture (JV) with a Taiwanese memory chip maker.

Sharma told ET that Micromax is still in discussions with the Taiwanese major and the focus will be on developing custom-made memory and storage solutions, which are anticipated to significantly reduce costs.

Micromax is developing a content app to bundle multiple OTT streaming platforms, aiming to disrupt the content space. Its manufacturing arm, Bhagwati, has taken over Vivo’s mobile phone factory in Greater Noida and will produce mobile phones, IT hardware, and automotive parts in partnership with a major original design manufacturer (ODM).

Sharma, without revealing the company name, said that the JV will see Bhagwati holding majority ownership and managing operations, while the ODM partner will provide technology and designs. Sharma will serve as the CEO of the joint venture as smartphone sales take a back seat.

“The partnership is all about technology. They have massive design capabilities, and are present in three ecosystems – Mobile phones, IT hardware, and automotive. They are one of the biggest in the world right now in the electronics manufacturing space,” Sharma told ET, adding that the JV is a massive leap for the country’s ambition in becoming a global manufacturing hub.

Sharma is in discussions with a Taiwanese memory chip maker to establish an R&D unit in India for designing custom memory and storage solutions for AI data centres. This will be under a new entity that will also assemble these chips locally.

“The investments here range around a couple of hundred crores, and we will be a able to follow the same trajectory as NVIDIA in the AI business, and help bring down costs for companies looking to train foundational models,” Sharma said.

The AI play will be led by a former executive of HP Enterprises and Seagate, with an office in Bengaluru, with the aim to serve the top industrial houses and government units in India.

Sharma plans to disrupt the video streaming space by bundling multiple OTT apps into a single platform, allowing users to pay one fee for access to all content. He confirmed that OTT players have agreed to a revenue-sharing model.

This move comes as government initiatives and ongoing tensions between Beijing and Washington drive Chinese manufacturers to move production to India.

Recently, Chinese technology giant Lenovo began manufacturing AI servers in southern India, expanding beyond its traditional products like laptops and smartphones. 

Meanwhile, Apple is shifting some of its production to India and aims to produce 25% of its iPhones there by 2028. Additionally, Xiaomi, which currently makes wireless audio products in India, is exploring opportunities to start smartphone production in the country.