[News] Tata Reportedly Set to Acquire Majority Stake in Pegatron’s Indian iPhone Plant

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According to a report from Liberty Times, citing the Reuters, India’s Tata Electronics has agreed to acquire a majority stake in the only iPhone factory owned by Taiwanese contract manufacturer Pegatron in India.

The factory will be operated as a joint venture, aiming to strengthen Tata’s position as a supplier to Apple, as the report notes.

The Reuters points out, citing industry sources, under the agreement announced internally last week, Tata will hold a 60% stake in this plant and take charge of daily operations. Pegatron will retain the remaining shares in the joint venture and provide technical support.

According to the report, sources indicates that the acquisition was internally announced at the Chennai plant on the 15th, and Tata and Pegatron plan to seek approval from the Competition Commission of India (CCI) soon.

In response, the report states that Tata Electronics declined to comment, while Apple and Pegatron did not reply to inquiries regarding the deal.

The report highlights that, amid rising geopolitical tensions between the U.S. and China, Apple is actively diversifying its supply chain to reduce reliance on China. For India’s Tata, the Chennai plant supports its iPhone manufacturing plans.

The report points out that Tata, one of India’s largest conglomerates, has been rapidly growing its presence in iPhone manufacturing, competing with Foxconn, the sole other iPhone contract manufacturer in India.

According to the report, the jointly operated plant, which employs about 10,000 workers and produces 5 million iPhones annually, will be Tata’s third iPhone factory in India.

Tata currently runs an iPhone assembly facility in Karnataka, located in southern India, which it acquired from Taiwan’s Wistron last year, as the report indicates. Additionally, it is constructing another plant in Hosur in Tamil Nadu, where it also has an iPhone component factory that experienced a fire incident in September.

 

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(Photo credit: Tata)