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New Delhi: Tata Electronics is set to acquire a 60 per cent stake in Taiwanese contract manufacturer Pegatron’s iPhone manufacturing plant in Tamil Nadu, forming a new joint venture (JV), according to a Reuters report citing sources.
This move will strengthen Tata’s role in Apple’s supply chain in India. Under the agreement, Tata Electronics will hold a majority stake of 60 per cent and oversee the plant's daily operations, while Pegatron will retain 40 per cent and provide technical expertise, the report added.
Tata Electronics And Pegatron Deal Details
Although the financial terms of the deal have not been disclosed, the decision was reportedly shared internally at Pegatron’s iPhone plant on November 15. The companies plan to file for regulatory approval with the Competition Commission of India (CCI) soon, sources added.
What Tata, Apple, Pegatron Said On The Deal?
Neither Tata, Apple, nor Pegatron responded to queries regarding the development.
In April, Reuters reported that Pegatron was in advanced talks to sell its only India-based iPhone facility near Chennai to the Tata Group. At that time, sources indicated the deal had Apple’s backing.
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Pegatron’s India Operations
Pegatron’s plant near Chennai employs approximately 10,000 workers and produces 5 million iPhones annually. This acquisition will further enhance Tata’s position in Apple’s Indian operations.
Tata already operates an iPhone assembly plant in Karnataka, which it acquired from Taiwan’s Wistron last year. Additionally, Tata is constructing another facility in Hosur, Tamil Nadu, where Pegatron is expected to collaborate as a JV partner.
Apple’s Growing Focus on India
The partnership aligns with Apple’s plans to expand its footprint in India, where Tata, Pegatron, and Foxconn are key iPhone manufacturers. Analysts estimate that India will contribute 20-25 per cent of Apple’s global iPhone shipments this year, up from 12-14 per cent in 2023.
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