Reliance teams up with US-based Sanmina to create a high-tech electronics manufacturing hub in India

• Mukesh Ambani’s Reliance announced a partnership with Sanmina, a US-based electronics manufacturer.
  
• Reliance and Sanmina will set up a joint venture with $200 million in cash, catering to various industries like infrastructure, communications, healthcare, defense and aerospace.
  
• Sanmina is a US-based electronics manufacturing service provider with an experience of over 40 years.
  

After renewable energy, Mukesh Ambani has now set his eyes on high-tech electronics manufacturing in India. A wholly-owned subsidiary of Reliance Industries has entered into a pact with the US-based electronics manufacturer Sanmina, with $200 million (approx. ₹1,500 crore) in cash to boot with.

Sanmina is a US-based electronics manufacturing service provider with an experience of over 40 years.

Shares of Reliance Industries were up 0.3% immediately after the announcement (9:25 a.m.).

The joint venture will be majority-owned by Reliance’s subsidiary, Reliance Strategic Business Ventures, with a stake of 50.1%, while Sanmina Corporation will own the remaining 49.9%. As a part of this deal, Reliance will invest ₹1,670 crore in Sanmina’s existing Indian entity.

“We are delighted to work with Sanmina to access the significant market opportunity for high-tech manufacturing in India. For both growth and security, it is essential for India to be more self-reliant in electronics manufacturing in Telecom, IT, Data Centers, Cloud, 5G, New Energy and other industries as we chart our path in the new digital economy,” said Akash Ambani, director, Reliance Jio.

What will this Reliance-Sanmina joint venture manufacture?

According to a statement from Reliance, the new joint venture with Sanmina will manufacture products like high-technology infrastructure hardware across industries like communications (like 5G equipment, data centres and more), medical and healthcare, defence and aerospace, among others.

Reliance also announced that it will set up a ‘Manufacturing Technology Center of Excellence’ that will serve as an incubation centre for the startup and product development ecosystem in India.

The statement also added that initially, the manufacturing will take place in Sanmina’s existing 100-acre campus in Chennai, with scope for further expansion to support future growth. The company also added that there is potential to expand its manufacturing facilities to other sites in India, but that depends on how this new joint venture takes off.

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