Taiwanese contract electronics manufacturer Pegatron is reportedly in advanced negotiations to transfer control of its sole iPhone manufacturing facility in India to the Tata Group, according to a report by Reuters citing sources familiar with the matter.
The move signifies Pegatron’s latest strategic shift in its partnership with Apple, the Cupertino-based tech giant. While financial details of the ongoing negotiations were not disclosed, the proposed agreement has reportedly received approval from Apple.
Under the terms of the deal, Tata aims to acquire a majority ownership stake of at least 65 percent in a joint venture responsible for operating the Pegatron plant near Chennai, Tamil Nadu. Pegatron will continue to provide technical assistance and retain the remaining ownership stake.
Tata, one of India’s largest conglomerates, will oversee the joint venture through its Tata Electronics division. The Pegatron facility in India currently employs around 10,000 workers and manufactures approximately five million iPhones annually. This move comes after Pegatron transferred control of its Chinese iPhone plant to Luxshare in a $290 million agreement.
Tata already operates an iPhone assembly plant in Karnataka, acquired from Taiwan’s Wistron last year, and is constructing another facility in Hosur, Tamil Nadu, where Pegatron is expected to become its joint venture partner.
Discussions regarding the acquisition of Pegatron’s additional iPhone factory at its Chennai campus are anticipated to conclude within six months. Upon finalization, all Pegatron India employees are expected to transition to the joint venture entity.
Analysts project that India will account for a significant portion of total iPhone shipments this year, making Tata’s involvement crucial to Apple’s expansion plans in the country. With Tata, Pegatron, and Foxconn as key manufacturing partners, Apple aims to strengthen its foothold in one of the world’s fastest-growing smartphone markets.
