5 days Ago
Tata Electronics is set to acquire a 60% stake in Taiwanese manufacturer Pegatron’s iPhone assembly plant in Chennai, marking a significant step in Tata’s expansion as an Apple supplier. Pegatron will retain a 40% stake, providing technical support under the new joint venture. The Chennai plant, which employs around 10,000 workers and manufactures over 5 million iPhones annually, will become Tata’s third iPhone facility in India.
The move aligns with Apple’s strategy to diversify its supply chain beyond China amidst geopolitical tensions between Beijing and Washington. Tata already operates an iPhone assembly unit in Karnataka, acquired from Wistron in 2023, and is building another in Tamil Nadu. These facilities bolster India’s growing contribution to global iPhone production, which analysts predict will reach 20-25% of total shipments this year, up from 12-14% in 2022.
Tata and Pegatron have been in detailed discussions for over a year, with the deal reportedly finalized internally last week. The companies are expected to seek approval from the Competition Commission of India (CCI) soon. Financial details of the transaction have not been disclosed.
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