NEW DELHI (Reuters) – India’s Tata Electronics has secured a deal to acquire a majority stake in Pegatron’s only iPhone plant in India. The new joint venture strengthens Tata’s position as an Apple supplier. Tata will control 60% of the plant and manage daily operations. Meanwhile, Pegatron will retain the remaining share and provide technical support for the Tata Pegatron iPhone venture. #TataPegatronIphone
The financial details of the deal were not disclosed by the sources. Neither Tata, Apple, nor Pegatron offered comments when approached by Reuters for further clarification. However, Reuters first reported in April that Pegatron was in talks to sell its iPhone plant to Tata as part of a broader strategy to scale back its Apple partnership.
The move aligns with Apple’s efforts to diversify its supply chain outside of China amid ongoing geopolitical tensions. Tata’s acquisition of the Chennai Pegatron plant significantly boosts its iPhone manufacturing capabilities. Tata is rapidly expanding in the sector and competing with Foxconn, the other major contract manufacturer in India. The iPhone plant officially communicated the deal’s closure internally on Friday.
The two companies plan to submit a request for approval from the Competition Commission of India (CCI) shortly, according to a second source. #TataPegatronIphone
Tata currently operates an iPhone assembly plant in Karnataka, which it acquired from Taiwan’s Wistron last year. Additionally, Tata is constructing another iPhone plant in Hosur, Tamil Nadu, where it also operates a component plant that was affected by a fire in September.
