Tata Electronics has taken a significant step forward in the Indian electronics manufacturing sector by acquiring a 60% controlling stake in the Indian unit of Pegatron, one of Apple’s key assembly partners. This move aligns with Tata’s strategy to strengthen its role in India’s growing iPhone production industry.
Pegatron’s Chennai plant to bolster Tata’s footprint
Pegatron, a Taiwan-based company, operates an iPhone manufacturing facility near Chennai in Tamil Nadu, India. With this acquisition, Tata Electronics has positioned itself to play a larger role in Apple’s supply chain. This development comes less than a year after Tata Electronics completed its acquisition of Wistron’s Indian business, another Apple partner involved in assembling iPhones.
Although neither Tata nor Pegatron disclosed the financial details of the deal, the partnership highlights India’s growing importance as a manufacturing hub for technology products. As global companies seek alternatives to China for production, India is becoming a preferred destination due to its favourable policies and skilled workforce.
Strengthening India’s position in tech manufacturing
Randhir Thakur, CEO and Managing Director of Tata Electronics, expressed optimism about the acquisition. He stated, “We look forward to a new era of AI, digital, and technology-led manufacturing as we build these new facilities and expand our operations in India.”
Tata only began assembling iPhones in India last year but has already emerged as a critical player in Apple’s Asian supply chain. This move cements Tata’s position in the industry and supports Apple’s ongoing efforts to diversify its production outside China.
A step towards Apple’s India expansion
Apple has steadily increased its production presence in India in recent years, focusing on reducing its reliance on China. Collaborating with local manufacturing giants like Tata strengthens its strategy. The partnership is expected to benefit both Apple and Tata, offering the latter greater access to advanced manufacturing techniques while giving Apple a robust supply chain in India.
The Tamil Nadu government has supported efforts to establish the region as a hub for electronics manufacturing. With Pegatron’s Chennai plant now under Tata’s control, this acquisition will likely boost employment opportunities and drive further investment in the state’s tech sector.
This acquisition marks another milestone in Tata’s push to expand its global manufacturing capabilities while supporting India’s growing role as a key player in the technology manufacturing ecosystem.
