India's Tata Electronics will buy a 60% stake in Taiwan's Pegatron's only iPhone factory in India, thereby consolidating Tata's position as Apple's main supplier partner in India.
Pegatron and the Tata Group have been in talks since at least April 2024. According to Reuters, the factory has about 10,000 employees and produces 5 million iPhones per year. It will become Tata's third iPhone factory in India.
Previously, Tata acquired an iPhone assembly plant owned by Wistron in the southern state of Karnataka.
According to people familiar with the matter, in the new agreement, Tata will be responsible for the daily operations of the former Pegatronics factory, while Pegatronics will provide technical support. The arrangement has not been publicly confirmed by Pegatron, Tata Group or Apple.
However, the news is said to have been announced internally by Zhenchuang and the Tata Group within the past few days. The two companies are said to be currently applying to the Competition Commission of India (CCI) for approval of the deal.
The factory in Chennai is Pegatron's only venture in India. Apple has been expanding production facilities outside of China and Taiwan where possible amid rising regional tensions.
Tata Group, one of India's largest manufacturing groups, has become Apple's main supplier in the country over the past year. Tata also plans to set up a second iPhone components factory in Hosur, Tamil Nadu.
The conglomerate's existing factory at the site, also owned by the former Pegatron, suffered a devastating fire in October 2024 and remains closed indefinitely until remedial measures are completed.