Tata Electronics In Talks With Global Tech Players For Contract Manufacturing Partnerships

Tata Electronics is reportedly in talks with a host of global tech giants, including Microsoft, Dell and HP among others to expand its capabilities and become a fully integrated electronics manufacturer.

As per ET, citing industry experts, this move is similar to Taiwanese electronics manufacturer Foxconn’s model.

Inc42 has reached out to Tata Electronics for comments on the development. The story will be updated based on the response.

The Tata Group-owned company is engaged in “good discussions” with various global tech companies, in terms of assembly and component supply, one of the sources was quoted as saying in the report.

As per sources, this is part of the company’s strategy where it is looking to onboard new clients rapidly even as it is currently consumed in the production of Apple’s iPhones.

“The plan was always to be an integrated EMS player and so this was a natural progression – to service multiple clients. Being able to service Apple has led to a lot of inbound interest from other companies,” a source added.

However, another source added that this is an evolved strategy of Tata Electronics post the fire that its Hosur factory suffered.

Tata Electronics’ iPhone manufacturing plant in Hosur suffered a major fire accident, temporarily disrupting the operations, in late September.

Following which, the company partially resumed operations in October.

Electronics manufacturing players in India have been gaining momentum with the rising interest of global tech giants who are on the lookout for new bases outside of China. 

This has given the opportunity for these manufacturers to bet on expansion of their business to add new clients and acquire new facilities.

For instance, Tata Electronics was known to acquire a 60% stake in Taiwanese electronics major Pegatron’s iPhone unit in Tamil Nadu, bolstering its position as an Apple supplier, in November.

Meanwhile, another homegrown electronics manufacturer Dixon Technologies incorporated a wholly-owned subsidiary called Dixon Teletech to manufacture IT hardware components, in early November.

So far, Dixon has signed contracts with as many as four top laptop brands, including HP, Lenovo, Acer, and Asus, to make IT hardware products in the country, while it already manufactures smartphones for Samsung, Motorola, Xiaomi, and Jio. 

On the other hand, Apple supplier Foxconn is in discussions with the Tamil Nadu government to expand its battery manufacturing business in India, with about 200 acres of land for its battery energy storage system (BESS) unit, as per reports.

Updated at 10:42 AM