Tata Said To Acquire Majority Stake In Pegatron's iPhone Production Facility In Tamil Nadu: What We Know So Far
Reports earlier this year suggested that Pegatron had Apple’s backing for the transaction as the Taiwanese company scaled down its involvement with the tech giant.
Tata Electronics has finalised an agreement to acquire a majority stake in Taiwanese manufacturer Pegatron’s only iPhone production facility in India, Reuters reported on Monday. This deal establishes a new joint venture, with Tata holding a controlling 60 per cent stake and managing daily operations, while Pegatron retains a 40 per cent share, contributing technical support, according to sources familiar with the development, as per Reuters.
Financial details of the agreement have not been disclosed, and the parties involved, including Apple, Pegatron, and Tata, have declined to comment publicly, Reuters reported.
Step Up For Tata
The deal, which was internally announced last week, is seen as a strategic step for Tata to cement its position in Apple’s rapidly growing Indian supply chain. Apple has been diversifying its production away from China amid escalating geopolitical tensions between the US and China, with India emerging as a critical manufacturing hub.
Reports earlier this year suggested that Pegatron had Apple’s backing for the transaction as the Taiwanese company scaled down its involvement with the tech giant.
The Chennai-based plant, which employs around 10,000 workers and manufactures approximately five million iPhones annually, will now join Tata’s expanding portfolio of iPhone production facilities.
Tata already operates a plant in Karnataka, acquired from Wistron in 2022, and is constructing another facility in Tamil Nadu, which also houses its iPhone component production unit.
The transition marks a new phase of competition for Tata as it challenges Foxconn, currently the largest iPhone manufacturer in India. Analysts predict that India will contribute 20-25 per cent of global iPhone shipments in 2024, up from 12-14 per cent in 2023, reflecting Apple's growing reliance on the country for production.
The joint venture’s formation was formally communicated to employees at the Chennai facility on Friday. The two companies are expected to seek approval from the Competition Commission of India (CCI) in the coming days to complete the transaction.
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