Tata Electronics has finalized a deal to acquire a 60% stake in Pegatron’s only iPhone manufacturing facility in India. Located in Chennai, Tamil Nadu, the plant employs around 10,000 workers and produces 5 million iPhones annually. Pegatron will retain a 40% stake, providing technical support while Tata handles daily operations. This acquisition reinforces Tata’s growing role as a key supplier for Apple in India.
India’s Role in Apple’s Supply Chain
Apple has been diversifying its manufacturing footprint to reduce dependency on China amid geopolitical tensions. India has emerged as a critical alternative, with its share of global iPhone production expected to reach 20-25% this year, up from 12-14% in 2023. Tata’s expanded role in iPhone production aligns with this strategy, positioning India as a vital player in Apple’s global supply chain.
Tata’s Rapid Expansion in iPhone Manufacturing
This deal marks Tata’s third iPhone manufacturing facility in India. The conglomerate previously acquired Wistron’s plant in Karnataka and is building another facility in Hosur, Tamil Nadu. These investments highlight Tata’s ambitions to become a leading iPhone manufacturer, rivaling other contract giants like Foxconn.
Challenges and Opportunities Ahead
The Chennai plant acquisition comes at a pivotal moment for Tata. A recent fire at one of its Hosur facilities highlighted operational challenges, but the company remains committed to expanding its capabilities. Analysts view Tata’s partnership with Apple as a significant step in bolstering India’s electronics manufacturing sector.
Looking Ahead
The Tata-Pegatron joint venture underscores India’s rising importance in global tech manufacturing. By strengthening local production, the partnership supports Apple’s efforts to diversify its supply chain while boosting India’s reputation as a hub for high-tech manufacturing. As Tata continues to expand its role, the collaboration is set to create more opportunities for growth and innovation in the region.
