Tata Electronics buys majority stake in Pegatron's only iPhone factory in India

Tata Electronics is making waves in India’s tech manufacturing sector with a major new acquisition. The Indian giant is set to buy a 60 per cent stake in Pegatron’s only iPhone manufacturing plant in the country, located in Chennai.

This move will strengthen Tata's position as a leading Apple supplier in India, adding to its already significant presence in the market. With around 10,000 employees and a production capacity of five million iPhones annually, this plant marks Tata's third major iPhone facility.

Talks between Tata and Pegatron have been ongoing since April 2024, and although the final signatures and public confirmations are yet to drop, insiders say the deal has been internally announced at both companies. Next up, the duo is reportedly preparing to get the necessary green light from the Competition Commission of India.

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Tata’s big moves in Apple’s India push

Apple has been trying to shift more production outside of China and Taiwan due to regional tensions, and India is a prime spot for this expansion.

Pegatron’s Chennai factory was the Taiwanese company’s only venture in India, and this sale fits nicely into Apple’s broader strategy to diversify its production base. Tata Group, a massive Indian conglomerate, has been on a mission to boost its status as a key Apple partner. It kicked things off last year by acquiring an iPhone assembly plant in Karnataka, previously owned by Wistron.

Tata isn’t stopping there. The company is also constructing a second iPhone component plant in Hosur, Tamil Nadu, which was initially set to open later this month. However, Tata’s first Tamil Nadu facility, another plant bought from Pegatron, hit a snag after a serious fire in October 2024. That factory remains shut until repairs are completed.

Tata’s retail & manufacturing ambitions

Tata has even more ambitious plans on the horizon. Besides expanding in manufacturing, the group aims to dive into Apple’s retail business in India. Talks are in progress to launch around 100 small, exclusive Apple stores across the country.

These stores, each about 500 to 600 square feet, will be managed by Tata’s Infiniti Retail division, the same team behind the well-known Croma chain. If this comes through, it will solidify Tata’s footprint not just in manufacturing but in retail as well.

Tata’s iPhone manufacturing plans

Meanwhile, in Hosur, preparations are reportedly “full steam ahead” for Tata’s latest project: a massive new iPhone assembly plant covering 250 acres.

This facility will employ about 50,000 blue-collar workers, predominantly women, making it the second-largest workforce for Apple production in India, only behind Foxconn’s enormous Tamil Nadu operation.

Already, components produced at Tata’s existing factory, set up in 2021, are being used in iPhones assembled locally and exported to China.

All in all, Tata Electronics seems to be going all in on Apple’s India strategy, positioning itself as a formidable force in the global tech supply chain while giving the country’s manufacturing scene a major boost.