In a strategic move to strengthen its position as an Apple supplier, Tata Electronics has acquired a majority stake in Taiwanese contract manufacturer Pegatron’s only iPhone plant in India. Under the terms of the new joint venture, Tata will hold a 60 per cent stake and take charge of daily operations, while Pegatron retains the remaining 40 per cent, providing technical support.
The deal, announced internally last week, marks a significant step forward in India’s growing role in Apple’s global supply chain.
Strengthening Apple’s Supply Chain Diversification
This acquisition aligns with Apple’s broader strategy of diversifying its supply chain beyond China, amid ongoing geopolitical tensions between Beijing and Washington. By partnering with Tata, a major Indian conglomerate, Apple is cementing its footprint in India, a country expected to contribute 20-25 per cent of global iPhone shipments in 2023, up from 12-14 per cent in 2022.
Located in Chennai, Pegatron’s iPhone plant employs around 10,000 workers and produces five million iPhones annually. This facility will now become Tata’s third iPhone manufacturing site in India, complementing its existing plants in Karnataka and Hosur, Tamil Nadu. The Karnataka plant was acquired from Taiwan’s Wistron last year, and the Hosur facility includes an iPhone component manufacturing unit.
The deal’s completion was announced internally to employees at the Chennai plant on Friday. The companies plan to seek approval from the Competition Commission of India (CCI) in the coming days to finalise the transaction.
Tata’s Expanding Role in iPhone Manufacturing
Tata has been aggressively expanding its presence in the iPhone production ecosystem, challenging Foxconn, the only other major contract manufacturer for Apple in India. With this acquisition, Tata’s manufacturing capabilities are poised to scale up significantly, further solidifying its partnership with Apple.
Implications for India’s Electronics Manufacturing Sector
This joint venture represents a major milestone for India’s ambitions to become a global hub for electronics manufacturing. With a growing share of Apple’s production and increased investments in high-tech manufacturing, India is set to play a crucial role in Apple’s future supply chain strategies.
The Tata-Pegatron partnership not only marks a significant shift in Apple’s global manufacturing strategy but also highlights Tata’s emergence as a key player in the high-stakes world of electronics production. With three iPhone factories under its belt, Tata is well-positioned to capitalize on India’s growing role in the global electronics supply chain.