Tata Electronics has reached an agreement to acquire a 60% stake in Pegatron’s iPhone manufacturing facility near Chennai, India, according to SCMP. The deal was announced internally recently and will create a new joint venture between the two companies, with Tata managing daily operations and Pegatron providing technical support.
Tata’s getting serious about iPhone production with this move. The Chennai facility, which employs approximately 10,000 workers and produces around 5 million iPhones annually, will become Tata’s third iPhone factory in India.
Tata will hold a 60% stake in the joint venture, with Pegatron retaining 40%. The companies plan to seek approval from the Competition Commission of India in the coming days.
Financial details of the transaction have not been disclosed.
This move goes hand in hand with Apple’s strategy to diversify its supply chain beyond China. Industry analysts estimate that India will contribute 20-25% of total iPhone shipments in 2024, up from 12-14% in 2023.
Tata’s growing presence in iPhone manufacturing now includes an assembly plant in Karnataka, acquired from Wistron last year. Another facility is under construction in Hosur, Tamil Nadu. And now this, the newly acquired Pegatron plant near Chennai
Neither Tata nor Apple have officially commented on the deal. Pegatron did not respond to requests for comment.