Tata Electronics Seizes Majority Stake in Pegatron's iPhone Plant, Bolstering Apple's Supply Chain in India

In a strategic move to enhance its position in the global supply chain, Tata Electronics has agreed to acquire a majority stake in Pegatron's sole iPhone manufacturing plant located in Tamil Nadu, India. This decision marks a significant step in Tata's ambition to become a formidable supplier for Apple.

Sources familiar with the deal disclosed that under the terms of the agreement announced internally last week, Tata will hold a 60% stake in the newly formed joint venture. This controlling interest allows Tata to take charge of daily operations, bringing its operational expertise to the forefront of the plant's activities.

Pegatron, on the other hand, will retain the remaining shares and will continue to contribute its extensive technical know-how to the partnership, ensuring the venture adheres to Apple's stringent quality standards and maintains its supply commitments.

This acquisition represents a pivotal development in the evolving dynamics of Apple's supply chain, reflecting not only a shift towards localization in production but also a diversification of its manufacturing partners. By securing a majority stake in this facility, Tata is poised to leverage India's growing manufacturing capabilities and competitive advantages.

The move aligns with Apple's broader strategy to mitigate supply chain risks and reduce dependency on any single region. It also underscores the increasing role of Indian firms in the global technology ecosystem, as they expand their capacity and capabilities in high-tech manufacturing.