Tata Electronics has reportedly agreed to acquire a majority stake in Pegatron’s only iPhone manufacturing plant in India. This deal will create a new joint venture, further strengthening Tata’s role as an Apple supplier, according to two sources who spoke to Reuters.
Majority Stake in Pegatron’s iPhone Plant
Tata Electronics will hold a 60% stake in the joint venture and manage daily operations, while Pegatron will retain 40% and provide technical support, according to an internal announcement.
This move follows earlier reports that Pegatron, backed by Apple, was in talks to sell its Chennai plant to Tata as part of Apple’s strategy to diversify manufacturing outside of China amidst ongoing geopolitical tensions. The plant will support Tata’s expanding iPhone production efforts.
Tata Expands iPhone Production in India
Tata, one of India’s largest conglomerates, is rapidly increasing its iPhone production to compete with Foxconn. The report mentions that an internal announcement regarding the deal’s closure was made at the Pegatron plant on Friday, with both companies planning to seek approval from the Competition Commission of India (CCI) in the coming days.
Tata already operates an iPhone assembly plant in Karnataka, took over another from Wistron last year, and is building a new facility in Hosur, Tamil Nadu. Industry analysts project that India’s share of total iPhone shipments will rise to 20-25% this year, up from 12-14% last year.
This move strengthens Tata’s position in iPhone manufacturing, with the Tata-Pegatron facility, which employs around 10,000 workers and produces 5 million iPhones annually, becoming Tata’s third plant in India. Tata declined to comment on the deal, and both Apple and Pegatron did not respond to inquiries, according to the report.
Since the financial details of the transaction have not been disclosed, an official announcement regarding the deal is expected in the coming days.