Tata Electronics Acquires Majority Stake in Pegatron’s iPhone Plant in India

In a significant development, India’s Tata Electronics has acquired a 60% stake in Taiwanese contract manufacturer Pegatron’s sole iPhone plant in India, creating a new joint venture that bolsters Tata’s position as a key supplier for Apple. The deal, announced internally last week, positions Tata to oversee daily operations, while Pegatron will retain 40% ownership and provide technical support, according to sources familiar with the matter.

Neither Tata, Pegatron, nor Apple has publicly commented on the deal.

Strengthening Apple’s Diversification Strategy

This move comes as Apple continues to diversify its supply chain away from China amid ongoing geopolitical tensions between Beijing and Washington. With the acquisition of the Chennai-based Pegatron plant, Tata is poised to significantly enhance its role in Apple’s global manufacturing ecosystem.

Tata Electronics, part of the Tata Group—one of India’s largest conglomerates—has been rapidly expanding its presence in the iPhone manufacturing sector. The Pegatron facility will be Tata’s third iPhone factory in India, further cementing its rivalry with Foxconn, currently the only other iPhone contract manufacturer operating in the country.

The Pegatron plant, which employs approximately 10,000 workers and produces 5 million iPhones annually, is expected to play a crucial role in Apple’s increasing reliance on India as a manufacturing hub. Analysts estimate that India will contribute 20-25% of total iPhone shipments this year, a notable jump from 12-14% last year.

Regulatory Approvals Pending

The joint venture between Tata and Pegatron will soon seek approval from the Competition Commission of India (CCI), according to sources. The acquisition highlights Tata’s strategic push into electronics manufacturing, as the company already operates an iPhone assembly plant in Karnataka and is building another facility in Hosur, Tamil Nadu.

Tata also manages an iPhone component manufacturing plant in Tamil Nadu, which was recently in the spotlight following a fire incident in September.

Pegatron’s Evolving Role

For Pegatron, the sale reflects a scaling back of its Apple operations, following months of advanced discussions supported by Apple. This marks the latest in a series of adjustments as the Taiwanese company recalibrates its role within Apple’s global supply chain.

Future Outlook

The acquisition aligns with Tata’s broader ambitions to emerge as a major player in electronics manufacturing while supporting India’s aspirations to become a global hub for technology production. The joint venture not only strengthens Apple’s manufacturing diversification efforts but also underscores the growing importance of India in the global tech supply chain.

As Tata assumes control of daily operations, the partnership between Tata and Pegatron is expected to boost iPhone production capacity in India, reinforcing the country’s position in Apple’s global strategy.