Tata expands iphone manufacturing in India. Tata Electronics has taken a significant step in strengthening its position in the global technology sector by acquiring a 60% stake in Pegatron’s iPhone production facility in India. This strategic move enhances Tata’s role in the iPhone supply chain and aligns with efforts to diversify Apple’s manufacturing operations beyond China amid geopolitical tensions.
Under the new agreement, Tata Electronics will oversee the facility’s daily operations, while Pegatron retains a 40% stake to provide technical expertise. This partnership underscores Tata’s growing influence in iPhone manufacturing and reinforces India’s role as a critical hub for high-tech production.
This acquisition complements Tata’s existing facilities, including an assembly unit in Karnataka acquired from Wistron, another Taiwanese company. The addition of Pegatron’s Chennai plant, which employs over 10,000 people with an annual production capacity of 5 million iPhones, and a planned facility in Hosur, Tamil Nadu, further solidifies Tata’s expansion in the sector.
Beyond increasing manufacturing capacity, this deal signals Tata’s entry into the global iPhone supply chain, positioning it as a competitor to Foxconn, the other major iPhone manufacturer in India. The move is part of a broader strategy by Tata to establish itself as a leader in advanced technology manufacturing. This ambition is also evident in Tata’s partnership with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) to develop India’s first AI-enabled semiconductor fabrication plant in Gujarat.
Analysts project that India’s share in global iPhone production could grow significantly, with the country expected to account for 20-25% of total iPhone shipments this year, up from 12-14% last year. The Pegatron facility will play a key role in meeting this rising demand.
Regulatory approval from the Competition Commission of India (CCI) is still pending, and financial details of the transaction remain undisclosed. However, this acquisition marks a pivotal moment for Tata Electronics, underscoring its commitment to scaling operations and becoming a key player in the global technology landscape.
In summary, Tata expands iphone manufacturing in India with Pegatron’s iPhone production facility is a bold step towards enhancing its manufacturing capabilities and securing a prominent position in the global supply chain, while also contributing to India’s growing importance in the technology sector.
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