Tata Electronics has secured a strategic deal to acquire a 60% stake in Pegatron’s iPhone manufacturing plant in Tamil Nadu. This acquisition significantly expands Tata’s role in Apple’s supply chain in India, aligning with Apple’s move to diversify its production away from China and Taiwan due to geopolitical tensions.
Strengthening Apple’s Supply Chain in India
Pending approval from the Competition Commission of India (CCI), Tata Electronics will take control of Pegatron’s only iPhone facility in India. This deal strengthens Tata’s growing position as a key player in Apple’s global supply network. Over the past year, Tata has swiftly become a major Apple supplier, part of a broader shift by multinational companies moving their manufacturing to India.
Tata’s Expanding Operations in Tamil Nadu
Tata Electronics isn’t stopping with this acquisition. The company is building another iPhone component facility in Hosur, Tamil Nadu, which will significantly enhance its production capacity and meet the increasing demand for iPhones.
Challenges and Opportunities
While the Pegatron acquisition presents a major opportunity, Tata has faced some challenges. The Hosur facility, formerly owned by Pegatron, suffered a severe fire in October 2024. As a result, it remains closed as Tata works on repairs. Despite this setback, Tata is determined to resume operations and continue its expansion.
Apple’s Strategic Shift to India
Apple’s decision to expand its manufacturing in India is influenced by several factors, notably the rise of geopolitical risks in China and Taiwan. India, with its large skilled workforce and favorable government policies, has become a prime destination for Apple’s manufacturing. Tata’s well-established presence and expertise in high-tech manufacturing make it an ideal partner to enhance Apple’s supply chain resilience.
Future Outlook
Tata Electronics is to increase the important role in Apple’s manufacturing strategy. With the Pegatron acquisition and the new facility in Hosur, Tata is to expand its capacity and solidify its status as a vital Apple supplier.
Conclusion
Tata’s acquisition of Pegatron’s Tamil Nadu facility marks a pivotal moment in Apple’s supply chain evolution. This move not only strengthens Tata’s position but also highlights India’s growing role as a global manufacturing hub. With supportive government policies and a skilled workforce, India is emerging as a key player in global tech manufacturing, and the Tata-Pegatron deal underscores this shift.
