Tata Electronics is set to acquire a majority stake in Pegatron's iPhone manufacturing plant in Tamil Nadu, marking a significant expansion of Tata's role as an Apple supplier. Under the terms of the agreement, Tata will hold 60% of the stake in the facility and oversee daily operations, while Pegatron will retain 40% and provide technical support. Although the deal was finalized internally last week, financial details have not been disclosed. Both Tata and Apple have refrained from commenting, and Pegatron has also not responded to inquiries.
This move is aligned with Apple’s broader strategy to diversify its supply chain away from China, driven in part by rising geopolitical tensions between the U.S. and China. For Tata, the acquisition solidifies its position within the iPhone manufacturing ecosystem, allowing the conglomerate to compete more aggressively with Foxconn, which also manufactures iPhones in India. The Tamil Nadu facility, which employs around 10,000 people, produces about 5 million iPhones annually.
This acquisition marks Tata’s third iPhone manufacturing plant in India. The conglomerate previously took over Wistron’s iPhone assembly plant in Karnataka last year and is in the process of building another facility in Hosur, Tamil Nadu.Â
The deal still requires approval from India’s Competition Commission, with filings expected soon. India’s role in Apple's supply chain has grown significantly, and analysts predict the country will account for 20-25% of global iPhone shipments this year, a significant increase from the 12-14% share in 2023.
The Tamil Nadu plant strengthens Tata’s growing iPhone production capabilities, contributing to India’s emerging position as a critical hub for Apple’s efforts to reduce reliance on Chinese manufacturing.
