India's Tata Electronics has taken a significant step toward becoming a key Apple supplier by acquiring a majority stake in Taiwanese contract manufacturer Pegatron’s sole iPhone plant in India. The deal forms a joint venture, with Tata holding a 60% stake and overseeing daily operations, while Pegatron retains 40% and provides technical expertise, according to insider sources.
The financial terms of the agreement remain undisclosed, as neither Tata, Apple, nor Pegatron responded to inquiries. The internal announcement was made last week, and the companies plan to seek approval from the Competition Commission of India (CCI) shortly.
This move follows Apple’s strategic push to diversify its supply chain beyond China, driven by rising geopolitical tensions between Washington and Beijing. For Tata, acquiring Pegatron’s Chennai plant aligns with its ambitions to ramp up iPhone manufacturing in India. The plant employs approximately 10,000 workers and produces 5 million iPhones annually, making it Tata’s third iPhone production facility in the country.
Tata has rapidly expanded its presence in the iPhone manufacturing space, joining Foxconn as one of India’s leading contract manufacturers. It previously acquired Wistron’s iPhone assembly plant in Karnataka and is constructing another in Hosur, Tamil Nadu. The Hosur facility also houses a component manufacturing unit, which recently made headlines due to a fire incident in September.
Analysts predict that India’s contribution to global iPhone shipments will reach 20-25% this year, up from 12-14% in 2023. This acquisition underscores Tata’s growing influence in Apple’s supply ecosystem and highlights India’s increasing role in global smartphone manufacturing.
Keep up with the latest updates on Tata, Apple, and India’s booming iPhone production industry.
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