Tata acquires majority stake in Pegatron’s iPhone plant in Tamil Nadu
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In a strategic move to bolster its role as an Apple supplier, India’s Tata Electronics has finalized a deal to acquire a majority stake in Pegatron’s sole iPhone manufacturing plant in the country.
The agreement, which was internally announced last week, establishes a new joint venture, with Tata owning 60% of the stake and managing daily operations, while Pegatron retains 40% and provides technical support, reported Reuters.
Neither Tata, Pegatron, nor Apple have commented publicly on the financial details of the transaction.
This development follows reports earlier this year that Pegatron, with Apple’s backing, was in advanced discussions to sell its Indian iPhone plant to Tata. The facility, located in Chennai, employs around 10,000 workers and produces approximately 5 million iPhones annually. It will become Tata's third iPhone manufacturing site in India, joining its existing operations in Karnataka and Tamil Nadu.
The acquisition aligns with Apple’s ongoing efforts to diversify its supply chain amid escalating geopolitical tensions between the United States and China. It also strengthens Tata’s position as a significant player in India’s growing iPhone production landscape, where it competes with Foxconn, currently the only other iPhone contract manufacturer in the country.
The deal is expected to undergo review by the Competition Commission of India (CCI) in the coming days.
Tata's first iPhone plant in Karnataka was acquired from Taiwan's Wistron in 2022, while its facility in Hosur, Tamil Nadu, produces iPhone components. The Hosur plant, however, faced operational challenges following a fire incident in September.
India’s contribution to global iPhone shipments has seen a sharp increase, rising from 12-14% last year to an estimated 20-25% in 2024. The addition of the Tata-Pegatron joint venture in Tamil Nadu underscores the growing prominence of India in Apple’s global manufacturing strategy.