Tata seals deal to acquire 60% of Pegatron's Tamil Nadu iPhone plant: Report

Under the agreement, Tata will hold a 60% stake in the plant and oversee daily operations, while Pegatron will retain the remaining 40% and provide technical support.

In Short

• Tata acquires majority stake in Pegatron’s Tamil Nadu iPhone plant
• To oversee operations with 60% stake in joint venture.
• Deal strengthens Tata’s position in Apple’s iPhone manufacturing ecosystem

Tata Electronics is set to acquire a majority stake in Pegatron’s iPhone manufacturing plant in Tamil Nadu, marking a big expansion of Tata’s role as an Apple supplier, according to sources cited by news agency Reuters.

Under the agreement, Tata will hold a 60% stake in the plant and oversee daily operations, while Pegatron will retain the remaining 40% and provide technical support.

The deal was reportedly finalised internally last week, although financial details remain undisclosed.

Neither Tata nor Apple commented on the development, and Pegatron also refrained from responding to inquiries.

The move aligns with Apple’s strategy to diversify its supply chain beyond China, amid growing geopolitical tensions between the U.S. and China. For Tata, this acquisition strengthens its position in the iPhone manufacturing ecosystem.

Tata has been aggressively expanding its footprint in this space, competing with Foxconn, India’s other major iPhone manufacturer. The Tamil Nadu plant, with its workforce of around 10,000 employees, produces approximately 5 million iPhones annually.

This will be Tata’s third iPhone manufacturing facility in India. The conglomerate took over Wistron’s iPhone assembly plant in Karnataka last year and is currently developing another facility in Hosur, Tamil Nadu.

The deal will also require approval from India’s Competition Commission, with filings expected in the coming days.

India’s role in Apple’s supply chain has been steadily growing. Analysts predict the country will account for 20-25% of global iPhone shipments this year, a sharp rise from 12-14% in 2023.

The Tamil Nadu facility is a key addition to Tata’s expanding portfolio, further establishing India as a crucial hub for iPhone production and Apple’s efforts to reduce reliance on China.