Tata Electronics has taken a major step in strengthening its position as an Apple supplier by acquiring a 60 per cent majority stake in Taiwanese contract manufacturer Pegatron's sole iPhone plant in India. The deal, which forms a new joint venture, marks a significant milestone in Apple's efforts to diversify its supply chain beyond China.
Under the agreement, Tata will handle daily operations of the Chennai-based plant, while Pegatron will retain a 40 per cent stake and provide technical support. Details of the financial terms were not disclosed, and Tata, Apple, and Pegatron have declined to comment publicly.
The announcement was internally communicated at the iPhone plant last week, and the companies plan to seek approval from the Competition Commission of India (CCI) shortly, according to sources.
Tata Electronics, part of the Indian conglomerate Tata Group, has been rapidly expanding its footprint in iPhone manufacturing. It already operates an assembly plant in Karnataka, acquired from Wistron last year, and is building another facility in Hosur, Tamil Nadu, where it also manufactures iPhone components.
The addition of the Pegatron facility, which employs around 10,000 workers and produces 5 million iPhones annually, will be Tata’s third iPhone manufacturing unit in India.
Apple's push to reduce reliance on China, driven by geopolitical tensions and supply chain risks, has positioned India as a key manufacturing hub. Analysts estimate that India will contribute 20-25 per cent of global iPhone shipments this year, a substantial increase from 12-14% last year.
Pegatron's decision to scale back its Apple operations aligns with these shifts. Reuters previously reported in April that Pegatron was in advanced talks to transfer its India plant to Tata, with Apple’s support.
The Chennai facility strengthens Tata's capabilities, allowing it to rival Foxconn, the only other iPhone contract manufacturer operating in India. Pegatron's technical expertise will aid Tata in scaling operations and meeting Apple’s stringent manufacturing standards.
As Apple continues to prioritise India, Tata’s latest move underscores its ambitions to become a critical player in the global supply chain for the tech giant. This deal is expected to further cement India's role as a growing hub for high-end electronics manufacturing.
