Pegatron is reportedly discussing transferring control of its only iPhone manufacturing facility in India to the Tata Group, as per a recent report from Reuters, although Pegatron denies this claim.
According to Pegatron, the report lacks solid evidence and is based on rumors, prompting them to refrain from commenting. This report could align with Pegatron’s previous actions. Last year, Pegatron shifted its iPhone manufacturing from Kunshan, China, to Luxshare in a similar manner.
This potential move would further reduce Pegatron’s involvement in Apple’s supply chain. Pegatron’s Chairman, Tong Zixian, clarified that the Kunshan factory transfer aimed to optimize resources and adapt to global manufacturing trends, not to exit Apple’s supply chain.
The report revealed that Pegatron is in advanced negotiations with Tata Group, with the proposed agreement suggesting Tata holding at least 65% ownership in the joint venture, with Pegatron offering technical support and retaining the rest.
Despite these reports, Pegatron denies any such plans, emphasizing its commitment as a major Apple supplier. The company entered India in 2021 under the production-linked incentive (PLI) scheme, investing Rs. 1,100 crore in a unit near Chennai.
The facility, operational since September last year, assembles flagship iPhones like the iPhone 13 and iPhone 14, similar to Foxconn’s operations.