Tata Group will oversee Pegatron’s activities in India after the purchase closes, and the Taiwanese major is expected to provide the company with manufacturing expertise. The deal will include an iPhone production plant in Chennai and a separate under-construction assembly unit. The most recent step comes five months after Tata acquired another Apple vendor Wistron’s manufacturing site in Karnataka
Tata Group is reportedly in final talks with Pegatron to purchase a majority share in the electronics manufacturer’s India business.
According to Bloomberg sources, the acquisition may be completed as early as May. Following the transaction, Tata Group will oversee Pegatron’s businesses in India, while the Taiwanese conglomerate will most likely provide manufacturing expertise.
According to the report, the deal will include an iPhone production plant near Chennai, as well as another unit that is now under construction.
This comes a few weeks after reports arose that the two were in advanced talks about a deal. According to previous reports, Tata planned to own at least 65% of a joint venture (JV) between the two corporations.
The latest development comes five months after Tata acquired another Apple partner, Wistron’s manufacturing facility in Karnataka, establishing itself as one of the tech giant’s suppliers.
Pegatron’s current facility in Chennai employs approximately 10,000 people and produces 5 million iPhones annually. This is likely to provide a significant boost to the Tata Group and assist in shoring up iPhone manufacture in the nation.
The Cupertino-based computer behemoth has been rapidly expanding its manufacturing capabilities in India and diversifying its production outside of China. This is largely due to the continuous geopolitical tensions between Washington, DC, and China.
The Cupertino-based corporation was reportedly exploring shifting at least half of its current supply chain from China to India earlier this month, according to sources.
However, Apple’s migration to India is mostly driven by the union government’s enticing subsidies under the production-linked incentive (PLI) scheme. As a result, vendors ranging from Foxconn to Jabil have made a beeline toward India.
Last week, it was claimed that Apple was in advanced talks with Murugappa Group and Tata Group-backed timepiece Titan to assemble and maybe manufacture sub-components for iPhone camera modules.
As a result, iPhone production in the country has increased dramatically. In 2023 alone, the business reportedly produced iPhones worth INR 1 lakh crore in India. Apple also reportedly constructed $14 billion worth of iPhones in India in fiscal 2024, accounting for almost one in every seven iPhones produced.
