India's Tata Electronics has agreed to acquire a majority stake in Pegatron's iPhone manufacturing facility in India, according to two sources familiar with the matter. The joint venture will see Tata holding a 60 percent stake and overseeing daily operations, while Pegatron will retain the remaining 40 percent and provide technical support. The sources requested anonymity as the details have not been made public. The financial aspects of the agreement were not disclosed. Tata has chosen not to comment, and inquiries to Apple and Pegatron have not received a response.
In April, Reuters reported that Pegatron was in advanced discussions to sell its Indian iPhone plant to Tata with Apple's backing, indicating a reduction of Pegatron's involvement with Apple.
Apple's shift to diversify its supply chain away from China is driven by geopolitical tensions between Beijing and Washington. For Tata, the acquisition of the Pegatron facility in Chennai aligns with its plans to enhance its iPhone manufacturing capabilities. Tata is a significant conglomerate in India and has been expanding its operations in iPhone manufacturing, competing with another iPhone contract manufacturer in India, Foxconn.
An internal announcement regarding the deal's finalisation was made at the iPhone plant on Friday, according to one source. The two companies plan to seek approval from the Competition Commission of India (CCI) in the coming days.
Tata’s other iPhone manufacturing plant in India
Previously, Tata acquired an iPhone assembly plant in Karnataka from Wistron last year and is currently constructing another facility in Hosur, Tamil Nadu. The latter location also houses an iPhone component plant that experienced a fire incident in September.
Analysts project that India will account for 20-25 percent of total iPhone shipments this year, an increase from 12-14 percent in the previous year. The Tata-Pegatron facility, employing approximately 10,000 individuals and producing 5 million iPhones annually, will be Tata's third iPhone factory in India.
ALSO READ: Oppo Reno 13 series to launch soon in India with 16GB RAM, 1TB storage
Inputs from Reuters
