Tata Group, after its acquisition of Wistron’s India operations for $125 million in October last year, is reportedly in talks to take over Pegatron’s iPhone manufacturing facility near Chennai, as Apple intensifies its footprint in the country.
Sources cited in a Reuters report suggest that Tata Group might secure a majority stake of 65% in a proposed joint venture to run the Pegatron plant, with negotiations reaching an advanced stage. The envisaged partnership is anticipated to be operated through Tata Electronics, as outlined in the report.
Employing nearly 10,000 individuals, Pegatron’s India facility currently produces iPhone 13 and 14 models. However, neither Pegatron, Tata Group, nor Apple have offered immediate comments regarding the development.
This move follows reports from December last year, indicating Tata Group's intentions to establish one of India’s largest iPhone assembly plants in Hosur, Tamil Nadu. This new facility, set to encompass approximately 20 assembly lines and potentially employ 50,000 workers within two years, is projected to commence operations within 12 to 18 months.
Tata Group presently manages the iPhone manufacturing plant in Karnataka, previously acquired from Wistron. Apple’s objective is to manufacture over 50 million iPhones annually in India, part of its strategy to diversify production beyond China.
The government’s array of initiatives, particularly the Production Linked Incentive (PLI) scheme for smartphone production, has catalyzed the proliferation of manufacturing facilities. This has enabled Indian companies to vie with global electronics giants entrenched in China. India, boasting a substantial domestic market and a skilled workforce, emerges as an attractive production hub amid escalating tensions between the US and China.
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