Challenging Foxconn’s dominance in India’s iPhone assembling scenario, Tata Electronics is set to acquire a 60% stake in Pegatron’s Tamil Nadu plant.
Tata Electronics is finalising an agreement to acquire a controlling 60% stake in Pegatron’s manufacturing facility in Tamil Nadu for an approximate exchange of $150-200 million. According to a report by the Economic Times, Pegatron will retain the remaining share in the joint venture.
This move is part of Tata’s expanding iPhone assembly capacity strategy. Combined with its ongoing expansion at its Hosur facility and the existing production capacity of Wistron and Pegatron, this deal could allow Tata Electronics to nearly match Taiwan’s Foxconn, the leading iPhone manufacturer in India.
As per ET, Apple’s contract manufacturers in India currently have a monthly production capacity of around 40 million iPhones, with 30-35 million units produced each month. This capacity is expected to rise as Apple diversifies its supply chain outside China due to geopolitical concerns. Tata Electronics is ramping up its local presence to meet increasing demand for semiconductors and iPhones, with the latter seeing a surge in recent months.
Pegatron, which employs about 9500 people in India, has produced around 4.5 million iPhones annually since its operations began in 2022. It was one of the three Apple suppliers selected under India’s Production-Linked Incentive (PLI) scheme for smartphones.
However, due to its later start compared to Foxconn and Wistron, it has benefits for only four years instead of five. Pegatron had committed to investing ₹11.32 billion between FY23 and FY25 under the PLI programme.
Tata Group, the first Indian company in Apple’s global iPhone supply chain, recently acquired Wistron’s assembly plant. Experts believe Pegatron’s divestment is part of its strategy to reduce reliance on Apple’s China-based supply chain.
