Tata Electronics targets tech giants Microsoft, Dell for client expansion

Tata Electronics is expanding its client base beyond Apple, aiming to diversify by partnering with tech giants like Microsoft, Dell, and HP

Tata Electronics, a key player in India’s electronics manufacturing services (EMS) sector, is in talks with major tech firms such as Microsoft, Dell, and HP to diversify its client base and position the company as a major force in the global EMS landscape.

 

The company aims to become India’s equivalent of Foxconn, adopting a similar model to the Taiwanese contract manufacturing giant, according to a report by The Economic Times.

Expanding beyond apple

Currently focused on assembling Apple iPhones, Tata Electronics is looking to broaden its portfolio. The report quoted a source saying that serving Apple has attracted interest from other leading tech companies. The firm is in advanced talks for both assembly and component supply with multiple clients, although not all discussions are expected to materialise due to Tata’s preference for high-volume contracts, the report said.

 

 

This diversification strategy follows a fire incident at one of Tata’s factories, which temporarily slowed its scaling efforts.

 

The report quoted Prabhu Ram, V-P at Cybermedia Research, as saying that Tata’s pivot from being an Apple-centric supplier to a broader EMS provider underscores its global ambitions. Engaging with top-tier clients not only diversifies Tata’s revenue streams but also enables it to scale operations and replicate Foxconn’s model, he said, as mentioned by The Economic Times.

Tata’s vertical integration advantage

For companies like Microsoft, Dell, and HP, Tata’s inclusion in their supply chains offers a strategic advantage. Tata’s entry provides these firms with diversified sourcing options, reducing risks associated with single-source dependencies, Ram said.

 

The report quoted Neil Shah, Research V-P at Counterpoint Research, as saying that Tata’s unique advantage is its vertical integration. Unlike Foxconn’s factory-focused model, Tata leverages its group capabilities across “software, chip design, and retail,” Shah said.

 

This integration could enable Tata to expand beyond traditional EMS into original design manufacturing (ODM) for products like PCs, wearables, and IoT devices.

Tata eyes semiconductor future

The report quoted Ekta Mittal, senior analyst at CCS Insights, as saying that Tata’s ambitions extend beyond assembly. The company is exploring opportunities in high-growth areas like semiconductors and sub-components, she said. The firm’s ability to quickly adapt and establish India as a reliable manufacturing hub will be critical.

 

Ekta Mittal further said that partnerships with major global players are vital for Tata’s long-term success. The Covid-19 pandemic underscored the importance of controlling supply chains, especially for critical components, she said, adding that as companies like Dell shift production away from China, collaboration with Indian manufacturers aligns with global supply chain diversification trends.