Tata Group in Advanced Talks to Acquire Pegatron’s iPhone Plant in India
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Tata Group is in advanced talks to purchase Pegatron’s sole iPhone manufacturing site in India, in a strategic move that highlights the changing dynamics of global supply chains. This development represents yet another shift in Pegatron’s relationship with Apple, as the Taiwanese company seeks to sell its business in the nation.
Under the planned transaction, which has been approved by Apple, Tata aims to own at least 65% of a joint venture that will supervise the Pegatron facility near Chennai in Tamil Nadu. Pegatron will provide technical help while maintaining minority ownership in the partnership. Tata, one of India’s largest corporations, will oversee the joint venture via its Tata Electronics business.
The Pegatron factory in India presently employs over 10,000 people and manufactures approximately 5 million iPhones every year. This decision comes after Pegatron handed over management of an iPhone production unit in China to Luxshare last year, signaling a strategic change in the company’s worldwide operations.
Tata’s acquisition of Pegatron’s factory provides a big boost to its iPhone production aspirations in India. The conglomerate currently operates an iPhone assembly factory in Karnataka, which it purchased from Wistron last year, and is in the midst of developing another facility in Hosur, Tamil Nadu, with Pegatron as a joint venture partner.
Furthermore, Pegatron has been building another iPhone manufacturing facility on its Chennai site, with reports suggesting that Tata may take over this facility as part of the agreement. The discussions between Tata and Pegatron are likely to be completed within six months, with all Pegatron India staff moving to the joint venture business.
This development highlights Apple’s continued attempts to diversify its supply chain beyond China, particularly as geopolitical tensions rise. India has emerged as an important market for Apple, with Tata playing a key role in the company’s growth aspirations in the nation. Analysts predict that India will contribute 20–25% of overall iPhone shipments this year, demonstrating the market’s rising prominence.
While the reasons for Pegatron’s gradual exit from the Apple market are unknown, the firm described last year’s China plant acquisition as a strategic decision to improve its operations and raise funds. As the global environment evolves, this upcoming purchase emphasizes the dynamic interplay between multinational firms and regional stakeholders in creating the future of manufacturing and supply chains.
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