Tata Electronics has acquired a 60% majority stake in Pegatron's only iPhone manufacturing unit in India, located in Chennai.
This acquisition is part of Tata's strategy to strengthen its position in the global technology manufacturing landscape and support Apple's efforts to diversify its production base outside of China.
Tata Electronics will hold a 60% stake and manage the daily operations, while Pegatron retains a 40% share and provides technical support.
The Chennai plant employs around 10,000 workers and has an annual production capacity of 5 million iPhones.
This move positions Tata as a key player in the iPhone supply chain and aligns with Apple's strategy to diversify its manufacturing bases.
Tata Electronics is also constructing another iPhone component plant in Hosur, Tamil Nadu, and has plans to launch around 100 small, exclusive Apple stores across India.
This acquisition is a significant step for Tata Electronics as it expands its footprint in the tech manufacturing sector and strengthens its partnership with Apple Inc., which is reportedly increasing its iPhone production in India, i.e. potentially double its production to over $30 billion annually within the next two years,
To recall, Apple Inc has recently established its first subsidiary in India, that marked Apple's first direct presence in India. This move aimed at expanding its operational footprint beyond assembly and sales.
Tata Electronics has been expanding its footprint in iPhone manufacturing with several plants in India. Last year, Tata Electronics took over an iPhone assembly plant in Karnataka from Taiwan's Wistron. Besides these two plants, Tata Electronics is constructing another iPhone component plant in Hosur, Tamil Nadu. This facility will further enhance Tata's production capabilities and support Apple's supply chain diversification efforts.
These plants collectively strengthen Tata Electronics' position as a key player in the global iPhone supply chain and support Apple's strategy to diversify its manufacturing bases.
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