iPhone Production in India Gets a Major Boost: Tata Reportedly Acquires 60% of Pegatron Plant

Tata Electronics is poised to enhance its presence in the iPhone manufacturing sector by acquiring a substantial stake in Pegatron's facility located in Tamil Nadu. This move is set to grant Tata a 60% ownership, entrusting it with the plant's daily management while Pegatron holds onto a 40% share, focusing on technical assistance.

This development comes as part of Tata's strategy to deepen its involvement with Apple as a key supplier, a move that has been solidified through an agreement finalized last week, the financial specifics of which remain undisclosed.

India's role in Apple's supply chain is expanding significantly. Analysts predict that the country will account for 20-25% of global iPhone shipments this year, up from 12-14% in 2023. The Tamil Nadu facility is a key addition to Tata's growing portfolio, further establishing India as a crucial hub for iPhone production.

The Pegatron plant employs around 10,000 workers and produces approximately 5 million iPhones annually. This will be Tata's third iPhone manufacturing facility in India. Last year, it took over Wistron's iPhone assembly plant in Karnataka and is currently developing another facility in Hosur, Tamil Nadu.

The move underscores Tata's commitment to expanding its role as an Apple supplier. By acquiring a majority stake in Pegatron's plant, Tata is positioning itself as a key player in the global smartphone market. This strategic acquisition not only enhances Tata's capabilities but also supports Apple's efforts to reduce reliance on Chinese manufacturing facilities.

This development also highlights India's importance as a manufacturing hub for Apple products and reflects broader trends within the global technology industry. As geopolitical tensions persist and companies seek diversification strategies, India's role as a reliable partner for tech giants like Apple is likely to continue growing.

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