Tata Group, one of India’s largest companies, is in advanced discussions to take control of Pegatron’s iPhone manufacturing facility in India. This facility, located near Chennai in Tamil Nadu, currently employs around 10,000 people and produces about 5 million iPhones every year. Under the proposed deal, Tata plans to hold a majority stake of at least 65% in a joint venture with Pegatron, with the Taiwanese company providing technical support.
Apple is reportedly supporting this deal, as the company aims to diversify its production beyond China, especially amidst tensions between China and the US. For Tata, taking over the Pegatron plant would strengthen its position in iPhone manufacturing in India.
Tata is already involved in assembling iPhones in Karnataka and is constructing another facility in Hosur, Tamil Nadu, where Pegatron might become its partner. Talks between Tata and Pegatron also include the possibility of Tata taking over another iPhone factory being built by Pegatron in Chennai.
If the negotiations succeed, all employees of Pegatron’s India operations would transition to the joint venture. This move reflects Apple’s increasing reliance on India for iPhone production, with analysts projecting that India could account for 20-25% of total iPhone shipments this year.
The reasons behind Pegatron’s shift away from its Apple business, both in China and now in India, remain unclear. Last year, Pegatron mentioned that the sale of its Chinese plant was aimed at optimizing its business operations and raising capital.
The potential partnership between Tata and Pegatron signifies a significant development in iPhone manufacturing in India, aligning with Apple’s strategy to diversify its production base and Tata’s ambitions in the technology manufacturing sector.
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