Tata Electronics will acquires 60% stake in Pegatron’s Tamil Nadu plant
Tata Electronics has agreed to acquire a 60% stake in Pegatron’s iPhone manufacturing plant in Tamil Nadu, India, marking a significant milestone in India’s growing role in the global smartphone supply chain. This joint venture positions Tata Electronics as the operator of the plant, while Pegatron retains a 40% stake to provide technical expertise and support.
Located near Chennai, the facility employs around 10,000 workers and produces approximately 5 million iPhones annually. This acquisition adds to Tata’s growing presence in iPhone manufacturing, complementing its facilities in Karnataka and another plant under construction in Tamil Nadu.
The deal aligns with Apple’s broader strategy to diversify its supply chain and reduce dependency on China amidst geopolitical uncertainties. Analysts predict that India’s contribution to global iPhone production will rise to 20-25% in 2024, up from 12-14% in the previous year.
The transaction, pending approval from the Competition Commission of India, highlights Tata Group’s ambitions to play a pivotal role in high-tech manufacturing. This development is also expected to boost India’s position as a key player in Apple’s supply chain, reflecting the country’s growing importance in the global electronics manufacturing ecosystem.
The acquisition represents a win for India’s “Make in India” initiative, reinforcing its potential as a global electronics manufacturing hub.
