Tata Electronics will hold 60% stake in the joint venture with Pegatron’s iPhone unit in Tamil Nadu
It is expected that the Tata Group’s subsidiary could pay $150-200 Mn for the stake
Earlier this year, Tata Electronics was in discussions to hold at least a 65% stake in a JV with Pegatron, to operate its plant in Hosur
Tata Electronics is reportedly acquiring a majority stake in Taiwanese electronics major Pegatron’s iPhone unit in Tamil Nadu, bolstering its position as an Apple supplier.
Tata Electronics will hold 60% stake in the joint venture and take care of the plant’s daily operations. Pegatron will hold the rest and offer technical support, as per Reuters.
The deal was announced internally last week.
Inc42 has reached out to Tata Electronics for comments on the development. The story will be updated based on the response.
As per ET, citing industry executives, the Tata Group company could pay $150-200 Mn for the stake.
Pegatron’s existing facility in Chennai employs about 10,000 employees and manufactures 5 Mn iPhones annually.
This comes at a time when industry competitor Foxconn was known to commence manufacturing iPhone 16 Pro Series at its TN unit, a few weeks ago.
In that light, Tata Electronics, which operates in joint capacities of both the Wistron and the Pegatron facilities, is expecting to strengthen its capacity to be at par or almost at par with that of Foxconn, the leading manufacturer of iPhones in India, said the report citing sources.
Earlier this year, Tata Electronics was in discussions to hold at least a 65% stake in a JV with Pegatron, to operate its manufacturing plant in Tamil Nadu’s Hosur.
Apple Inc’s iPhone production in India reached a value of $14 Bn, in FY24, marking its manufacturing gain in shift from China, as iPhones contribute 51% of its total global revenue.
Additionally, Apple is also looking to assemble 32% of the global iPhone production volume and 26% of its value in India by 2026-27, as per reports.
Meanwhile, reports say that the iPhone maker is looking to expand manufacturing in India by looking for an initial manufacturing work on an iPhone 17 base model in the country soon.
