Tata Acquires Pegatron’s iPhone Plant in Tamil Nadu to Expand Apple Manufacturing in India

India’s Tata Electronics has finalized a significant deal to acquire a majority stake in Taiwanese company Pegatron’s iPhone plant in Tamil Nadu, according to sources. The deal establishes a joint venture, with Tata owning 60% and managing day-to-day operations, while Pegatron retains a 40% share and offers technical support.

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This strategic move is seen as a win for Tata, strengthening its position as a key supplier for Apple and advancing India’s growing role in iPhone manufacturing. Apple, Pegatron, and Tata have not yet issued public statements about the transaction.

What the Deal Means for Apple and Tata

The decision comes amid Apple’s efforts to reduce reliance on Chinese manufacturing and diversify its global supply chain. Analysts predict India will contribute 20-25% of worldwide iPhone shipments in 2024, a substantial increase from 12-14% last year.

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For Tata, this acquisition is another major step in expanding its role in the smartphone supply chain. Tata already operates an iPhone assembly plant in Karnataka, acquired from Wistron last year, and is developing another facility in Hosur, Tamil Nadu. The Hosur plant, which manufactures iPhone components, experienced a fire incident in September but remains a key part of Tata’s operations.

Next Steps and Future Impact

Sources revealed that Tata and Pegatron plan to file for approval with the Competition Commission of India (CCI) soon. Once operational under Tata, the Tamil Nadu plant, employing approximately 10,000 workers and producing 5 million iPhones annually, will mark Tata’s third iPhone production facility in India.

This move also places Tata in direct competition with Foxconn, another major Apple supplier in India. By scaling its manufacturing capabilities, Tata aims to meet growing demand and solidify its position in the global electronics market.

Why It Matters

This acquisition reflects India’s increasing importance in Apple’s supply chain strategy. For Tata, it aligns with their goal to lead advanced manufacturing sectors. For Apple, the partnership ensures supply chain stability as geopolitical tensions continue to pose challenges.

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