SUMMARY
- Tata Electronics is set to acquire a majority stake in Pegatron’s iPhone division in Tamil Nadu.
- This agreement was announced internally last week.
- Tata Group could pay between $150 to $200 million for this stake.
Tata Electronics is set to acquire a majority stake in Taiwanese electronics giant Pegatron‘s iPhone division in Tamil Nadu, strengthening its role as a supplier to Apple. This agreement was announced internally last week.
Tata Electronics will own 60% of the venture and manage the day-to-day operations of the plant. Reuters reported that Pegatron will retain the remaining 40% and provide technical support.
ET cited industry executives, stating that Tata Group could pay between $150 to $200 million for this stake.
Pegatron’s existing facility in Chennai employs approximately 10,000 workers and produces 5 million iPhones annually.
This move comes as a competitor, Foxconn, began producing the iPhone 16 Pro Series at its TN facility, a few weeks back.
Tata Electronics, which collaborates with both Wistron and Pegatron facilities, aims to advance its capabilities to match or even surpass Foxconn, the leading iPhone producer in India, as mentioned in the report.
Earlier in 2024, Tata Electronics was in talks to secure at least a 65% stake in a joint venture with Pegatron to set up its manufacturing plant in Hosur, Tamil Nadu.
Apple Inc.’s iPhone production in India reached $14 billion in value in FY24, indicating a shift in manufacturing from China, as iPhones account for 51% of its total global revenue.
As per reports, Apple is planning to assemble 32% of the worldwide iPhone production and 26% of its value in India by 2026-27.
There are reports suggesting that Apple is in the process of expanding its manufacturing presence in India by starting production on an iPhone 17 base model.
