On November 17, Reuters revealed that Tata Electronics, part of India’s Tata Group, has reached an agreement to acquire a majority stake in Pegatron’s sole iPhone manufacturing facility in India. This deal will create a new joint venture, further solidifying Tata’s role as a key supplier for Apple, according to two sources familiar with the matter.
Tata to Acquire Majority Stake in Pegatron’s iPhone Plant in India
According to two sources, who spoke on condition of anonymity as the details have not been made public, Tata will own 60% of the joint venture and look after its daily operations, while Pegatron will retain the remaining stake and offer technical support. The sources did not provide further details on the financial terms of the agreement. Tata refused to comment, and neither Apple nor Pegatron responded to Reuters’ inquiries on Sunday.
In April, Reuters was the first to report that Pegatron, with Apple’s support, was in advanced discussions to sell its sole iPhone manufacturing plant in India to Tata. This move is part of the Taiwanese company’s broader strategy to scale back its Apple operations. The deal comes as Apple looks to reduce its reliance on China and diversify its supply chain amid growing geopolitical tensions between Beijing and Washington.
Tata to Strengthen iPhone Manufacturing with Pegatron Plant Acquisition
For Tata, one of India’s largest conglomerates, acquiring the Pegatron plant in Chennai will boost its iPhone manufacturing capabilities and position it to compete more effectively with Foxconn, the other major iPhone contract manufacturer operating in India.
According to one source, the deal’s closure was internally communicated at the Chennai plant on Friday. The two companies are expected to soon apply for approval from the Competition Commission of India (CCI), according to the second source. Tata, which took over an iPhone assembly plant in Karnataka from Wistron last year, is also constructing another facility in Tamil Nadu. This plant is located near a component facility that was recently involved in a fire incident in September.
