Tata Reportedly Deal With Pegatron For iPhone Making Plant In India

Tata Electronics has agreed to buy a majority stake in Taiwanese contract manufacturer Pegatron’s only iPhone plant in India, which will form a new joint venture, sources said. With this move, Tata will strengthen its position as an Apple supplier. Here we are telling you about it in detail.

Under the deal finalized internally last week, Tata will hold a 60 percent stake and handle operations under a joint venture, while Pegatron will hold the remaining stake and provide technical support, said two of the sources (who declined to be named as the information was confidential). It has not been made public yet.) Sources did not elaborate on the financial terms of the deal. Tata Group has not commented on this, while Apple and Pegatron did not respond to Reuters’ questions on Sunday. Reuters first reported in April that Pegatron had received Apple’s support. It is in talks to sell its only iPhone plant in India to Tata.

Amidst the geopolitical tension between Beijing and Washington, Apple is considering expanding its supply chain beyond China. For Tata, the Chennai Pegatron plant will give a boost to its iPhone manufacturing plans. Tata is rapidly expanding into iPhone manufacturing and taking on Foxconn, the only other iPhone contract manufacturer operational in India. Both the companies are planning to apply for CCI approval in the coming days.

Tata already runs an iPhone assembly plant in Karnataka, which it took over from Taiwan’s Wistron last year. Apart from this, another plan is also being made in Hosur, Tamil Nadu, where it also has an iPhone component plant. Let us tell you that India’s share in total iPhone shipments this year will be 20-25 percent, which was 12-14 percent last year. The Tata-Pegatron plant, which has approximately 10,000 employees and produces 5 million iPhones annually, will be Tata’s third iPhone factory in India.