Tata Joins Forces with Pegatron to Boost iPhone Production in India—A Game-Changer for Apple

India’s Tata Electronics has struck a deal to take a majority stake in Pegatron’s iPhone manufacturing plant in Tamil Nadu, boosting Tata’s role as a key Apple supplier. The agreement, revealed internally last week, will see Tata owning 60% of the joint venture and managing daily operations, while Pegatron retains 40% and provides technical expertise, according to sources familiar with the matter.

Key Details of the Deal

• The financial terms of the deal remain undisclosed.
• Tata, Pegatron, and Apple have not officially commented on the development.
• This marks Pegatron’s latest move to scale back its Apple partnership globally.

Strategic Importance

Apple has been diversifying its supply chain beyond China due to rising geopolitical tensions between the U.S. and China. This deal strengthens Tata’s presence in India’s growing iPhone production ecosystem, rivaling Foxconn, the only other iPhone contract manufacturer in India.

The Pegatron plant, located in Chennai, employs around 10,000 workers and produces 5 million iPhones annually. This will be Tata’s third iPhone factory in India, complementing its existing facilities in Karnataka and Hosur, Tamil Nadu.

Next Steps

• Tata and Pegatron will seek approval from the Competition Commission of India (CCI) in the coming days.
• The acquisition aligns with Tata’s expansion plans, as India is projected to account for 20-25% of global iPhone shipments this year, up from 12-14% in 2023.

Broader Implications

Tata’s growing footprint in iPhone manufacturing reflects India’s rising importance in Apple’s global supply chain. The move also highlights India’s potential to become a major electronics manufacturing hub in the coming years.