Tata Group is reportedly close to sealing a significant deal with Pegatron, a Taiwanese company, to acquire a majority stake in its iPhone manufacturing operations in India.
Earlier reports by Reuters hinted at discussions between the two companies, suggesting a potential collaboration, which Pegatron denied at that time.
However, a recent Bloomberg report reveals that negotiations between Tata Group and Pegatron are now in the final stages, with an agreement expected by May. This deal would strengthen Apple’s relationship with Tata Group.
It entails Tata Group taking control of Pegatron’s Apple handset assembly operations, including an existing production plant near Chennai and another one under construction.
After the deal’s completion, Tata Electronics will oversee Pegatron’s operations, leveraging the Taiwanese company’s manufacturing expertise. This move aligns with Apple’s efforts to increase production in India, supported by incentives from the government to attract foreign investment and boost domestic manufacturing.
Pegatron started operations in India in 2021 with an investment of Rs. 1,100 crore near Chennai, under the production-linked incentive (PLI) scheme. The facility has been assembling flagship iPhones like the iPhone 13 and iPhone 14 since September last year, akin to Foxconn’s operations.
The current administration has offered production-linked subsidies to key Apple suppliers like Pegatron, encouraging them to expand their presence in India. Tata Group initially entered iPhone assembly by acquiring a factory from Taiwan’s Wistron Corp. in Karnataka.
Additionally, Tata plans to build a new iPhone production plant, emphasizing its commitment to its partnership with Apple and its presence in smartphone manufacturing.