Reliance Industries plans to invest up to $221 million in US electronics company Sanmina to form a joint venture as the Indian giant seeks to expand its electronics manufacturing.
The joint venture aims to create a “world-class” electronics manufacturing hub in India, the two said. It will prioritize high-tech infrastructure hardware, for growing markets and in sectors such as communication networks (5G, cloud infrastructure, hyperscale data centers), medical and healthcare systems, industrial technologies and clean, defense and aerospace.
All manufacturing will initially take place at Sanmina’s 100-acre campus in Chennai, with the option to expand the site to support future growth opportunities as well as potentially expanding to new manufacturing sites in India over time. time based on business needs, they said.
The joint venture will also establish a “Center of Excellence in Manufacturing Technology” to, among other things, support the product development and hardware startup ecosystem in India.
Reliance Strategic Business Ventures, a wholly owned subsidiary of Reliance Industries, will own 50.1% of the joint venture, India’s largest company said in a filing with the stock exchange. The American company partnered with electric vehicle maker Ather Energy in 2018 to develop and manufacture key components for the scooter.
“We are delighted to work with Sanmina to tap into the significant high-tech manufacturing market opportunity in India,” Akash Ambani, director of Reliance Jio, said in a statement.
“For growth and security, it is essential for India to be more self-sufficient in electronics manufacturing in telecom, IT, data center, cloud, 5G, new energy and others, as we chart our course in the new digital economy.Through this partnership, we plan to drive innovation and talent in India, meeting both Indian and global demand.
Thursday’s move is the latest by an Indian giant to expand electronics manufacturing in the country as Narendra Modi’s government pushes hard to boost domestic production. Vedanta Group last month signed a partnership with Taiwan’s Foxconn to manufacture semiconductors in the country.
The Indian government is offering nearly $7 billion in incentives to boost the electronics manufacturing sector.