Tata Group Pa.rtners with Pegatron for iPhone Manufacturing Plant in Tamil Nadu

Tata Electronics has agreed to acquire a majority stake in Taiwanese contract manufacturer Pegatron's sole iPhone plant in India, forming a new joint venture to enhance Tata’s position as a key Apple supplier. According to two sources familiar with the matter, Tata will hold 60% of the joint venture and manage daily operations, while Pegatron will retain the remaining stake and provide technical support. The financial terms of the deal have not been disclosed.

Tata declined to comment, and both Apple and Pegatron did not respond to inquiries.

This move comes as Apple seeks to diversify its supply chain outside China amidst growing geopolitical tensions between Beijing and Washington. For Tata, the Pegatron plant in Chennai will be a significant boost to its iPhone manufacturing operations. The deal was internally announced at the Chennai plant last week, and the two companies are expected to seek approval from the Competition Commission of India (CCI) soon.

Tata, one of India’s largest conglomerates, has been rapidly expanding its footprint in iPhone manufacturing, competing with Foxconn, the only other major iPhone contract manufacturer in India. Tata already operates an iPhone assembly plant in Karnataka, which it acquired from Wistron last year, and is building another in Hosur, Tamil Nadu.

The Pegatron plant, which employs around 10,000 people and produces 5 million iPhones annually, will become Tata’s third iPhone manufacturing facility in India. Analysts estimate that India will account for 20-25% of global iPhone shipments this year, up from 12-14% last year.

HBL