Tata Electronics acquires Pegatron's iPhone plant in Tamil Nadu
Tata Electronics has acquired a majority stake in Pegatron's only iPhone manufacturing facility in Tamil Nadu. The move makes Tata a major supplier for Apple. The deal was announced internally last week, with Tata expected to handle day-to-day operations of the plant and own 60%. Pegatron will keep the rest 40% and provide technical support to the venture.
Expansion in iPhone manufacturing
The acquisition of the Pegatron plant fits into Tata's expansion strategy into iPhone production. It makes them a competitor to Foxconn, another leading iPhone contract manufacturer in India. The deal's completion was internally announced at the iPhone facility on Friday. Both companies are likely to seek approval from the Competition Commission of India (CCI) soon.
Tata's existing iPhone assembly operations in India
Tata already runs an iPhone assembly plant in Karnataka, which was earlier owned by Taiwan's Wistron. The company is also building another facility in Tamil Nadu's Hosur. This new acquisition will mark Tata's third iPhone factory in India, bolstering its manufacturing capabilities even further.
Impact of Tata-Pegatron deal on iPhone shipments
Analysts predict that India's contribution to total iPhone shipments will grow significantly this year. The Tata-Pegatron facility, which employs some 10,000 workers and makes five million iPhones a year, is expected to play a key role in fulfilling these market demands.
