Tata Strengthens iPhone Production Efforts in India with Acquisition of Pegatron’s Indian Facility

Tata Electronics Pvt Ltd (TEPL) has acquired a 60% stake in Pegatron's Indian unit, strengthening its role in the electronics manufacturing sector. This acquisition aligns with Tata's strategy to expand its manufacturing capabilities, particularly as an Apple supplier. The financial terms of the deal remain undisclosed. Pegatron India, a subsidiary of Taiwan's Pegatron Corporation, provides contract-based electronics manufacturing services to global companies like Apple.

The acquisition is part of Tata Electronics' broader plan to enhance its presence in the electronics and semiconductor sectors. Tata Electronics CEO Randhir Thakur stated that this move fits into their strategy of expanding their manufacturing footprint. "We look forward to a new era of AI, digital, and technology-led manufacturing as we bring up these new facilities and expand our operations in India," Thakur said.

Expansion Plans for Semiconductor Manufacturing

Tata Electronics is investing heavily in semiconductor manufacturing facilities across India. A significant investment of Rs 91,000 crore is being made in Dholera, Gujarat, to build India's first Fab. Additionally, Rs 27,000 crore will be allocated for a greenfield facility in Jagiroad, Assam. These facilities will focus on producing semiconductor chips for various applications such as automotive and mobile devices.

In March 2024, Tata Electronics acquired Wistron's India operations located in Narsapura, Karnataka. This acquisition was part of their aggressive expansion strategy within the electronics manufacturing domain. The company aims to integrate teams from both Tata and Pegatron Technology India to ensure seamless operations.

Impact on India's Manufacturing Sector

N Chandrasekaran, Chairman of Tata Sons, highlighted the potential transformation of India's economy through manufacturing. He referred to this period as "a new manufacturing golden age for India." Chandrasekaran emphasised that creating manufacturing jobs is crucial for India's development goals. The Tata Group plans to create 500,000 jobs over the next five years across sectors like semiconductors and electric vehicles.

This initiative underscores their commitment to bolstering India's position as a global manufacturing hub. The rebranding of Pegatron Technology India will reflect its new ownership under Tata Electronics while maintaining high-quality service delivery. This strategic move follows the shifting global supply chains favouring India as businesses seek resilience and efficiency.

As part of their expansion efforts, Tata Group is also focusing on building infrastructure for semiconductor chip assembly and testing. These initiatives are expected to serve customers worldwide by catering to key segments such as artificial intelligence (AI). Tata Sons' leadership believes that without creating substantial manufacturing jobs, India cannot achieve its aspirations of becoming a developed nation.

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