Tata Acquires Majority Stake in Pegatron’s iPhone Plant in Tamil Nadu

Tata Electronics has secured a deal to acquire a 60% stake in Pegatron’s only iPhone plant in India, located in Tamil Nadu. This partnership strengthens Tata’s position as a major Apple supplier and marks a significant shift in the geopolitical supply chain dynamics, with India becoming a key hub for iPhone manufacturing. The joint venture will involve Tata handling day-to-day operations, while Pegatron provides technical support. The plant, which employs around 10,000 people, currently produces 5 million iPhones annually. This acquisition places Tata at the forefront of Apple’s efforts to diversify its manufacturing away from China.

Deal Overview

Ownership: Tata Electronics will own 60%, and Pegatron will hold 40%.

Operations: Tata will run the daily operations; Pegatron will offer technical expertise.

Production: The Chennai plant manufactures 5 million iPhones annually.

Tata’s Growing Footprint in iPhone Manufacturing

Expansion: Tata already operates an iPhone assembly plant in Karnataka and is building another facility in Hosur, Tamil Nadu.

Market Share: India is expected to contribute 20-25% of global iPhone shipments this year, up from 12-14% last year.

Industry Implications

Apple’s Strategy: Amid geopolitical tensions between the U.S. and China, Apple is focusing on shifting production to India, a crucial move to mitigate risks tied to China.

Tata’s Role: With this acquisition, Tata now rivals Foxconn as one of the largest contract manufacturers for Apple in India.

Summery of the News