Tata Electronics is going to buy a majority stake in the iPhone manufacturing plant in Tamil Nadu from Pegatron and will set up a joint venture with Pegatron that will help Tata increase its share in the Apple supplier. The agreement sees Tata owning 60 percent of the company and running day-to-day operations, while Pegatron retains the 40 percent stake and will continue to provide technical support. The move comes after Tata acquired Wistron's plant in Karnataka and built another in Hosur.
Pegatron, which employs nearly 10,000 people, makes about 5 million iPhones a year at the plant. Apple is diversifying production away from China as geopolitical tensions continue, and this acquisition is part of that strategy. Apple is expanding as part of that plan, with plans for more retail stores and a target of 25 percent of total iPhone production in India by 2023.
Apple's efforts to manufacture in India have already been a success, with exports to the tune of USD 10 billion in FY23-24. The company, which has been setting new export records, is solidifying its market presence in India as it continues to commit to local production. Apple's CEO Tim Cook expressed excitement about the company's growth in India, saying that it had a record revenue year and is planning to expand further.
It also gives Tata a higher profile in the Apple supply chain and adds another mark to India’s increasing stature as a global technology manufacturing hub. Tata Electronics, on its part, is poised to play a critical role as Apple’s ambitious plans for the Indian market move forward with this acquisition.
