Tata Electronics Acquires 60% Stake In Pegatron's iPhone Factory In Chennai

Homegrown Tata Electronics is set to acquire a controlling stake in iPhone manufacturer Pegatron's Chennai-based manufacturing facility. The deal, which gives Tata a 60 per cent ownership, strengthens the Indian conglomerate's position in Apple's global supply chain, said a report by news agency Reuters on Monday.

Tata has signed a 60-40 joint venture (JV) with Pegatron for the iPhone factory, the report added, citing sources.

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Tata-Pegatron Partnership

Under the newly formed JV, Tata Electronics will manage daily operations while Pegatron will maintains a 40 per cent stake, providing technical expertise. The partnership was announced to facility employees last week, with regulatory approvals pending.

Growing Apple Manufacturing In India

This acquisition marks Tata's latest expansion in iPhone production, following its recent takeover of Wistron's facility in Karnataka. 

The company is also developing a new manufacturing unit in Hosur, Tamil Nadu, despite a recent fire incident at its component plant in the same region.

Global Supply Chain

The deal reflects Apple's ongoing strategy to diversify its manufacturing base beyond China, amid growing political tension between Beijing and Washington. Tata's growing presence positions it as a strong competitor to biggest iPhone contract manufacturer Foxconn, also the primary iPhone assembler in India.

The companies plan to seek approval from India's Competition Commission (CCI) in the immediate future, as required for such major acquisitions.

The Reuters report further added that Tata Electronics declined to comment on this development, while Apple and Pegatron did not respond to inquiries about the deal.