Tata to acquire 60% stake in Pegatron India operations

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Tata to acquire 60% stake in Pegatron India operations

Tata to acquire 60% stake in Pegatron India operations

Industry News
Nov 19,24

The Tata Group has announced plans to acquire a 60% stake in Pegatron’s India operations, further cementing its position as a key manufacturer for Apple. This move follows Tata’s acquisition of Wistron’s India business last year, making the conglomerate a significant partner for the American tech giant alongside Taiwanese manufacturer Foxconn.

Under the leadership of N Chandrasekaran, Tata has made significant strides in Apple's manufacturing ecosystem, including producing the latest iPhone 16 models. This acquisition aligns with Tata’s broader ambitions in electronics manufacturing, including its foray into semiconductor production in India. Pegatron, which accounted for 10% of iPhone production in India last year, operates a factory in Tamil Nadu capable of producing five million iPhones annually and employing around 10,000 workers.

Sources reveal that Pegatron sought an Indian partner due to tight margins and challenges in managing labour demands in southern India. This reflects broader concerns among Apple’s suppliers about maintaining high-quality production standards and managing workforce expectations.

Tata’s partnership with Pegatron comes amid Apple's push to diversify its production base outside China, with India poised to contribute 24% of global iPhone production this year—double the previous year’s share. Additionally, the Indian government is encouraging Apple to expand its manufacturing footprint in the country, including producing MacBooks and iPads. While these products are not yet made in India, Apple plans to begin manufacturing AirPods next year, with casings produced by Jabil in Pune and assembly by Foxconn in Telangana.

Tata and Pegatron are also expected to collaborate on a new factory in Hosur, Tamil Nadu, further bolstering India’s position as a key hub in Apple’s global supply chain.

(TOI)