In a significant move, the Tata Group is set to acquire a 60% stake in the India operations of Pegatron, one of Apple’s key manufacturing partners. This acquisition comes almost a year after Tata took over the India operations of another Apple supplier, Wistron. With this deal, Tata will become one of the largest contract manufacturers for Apple, alongside the Taiwanese giant Foxconn.
The Tata Group has been steadily expanding its presence in Apple’s manufacturing ecosystem and has already begun producing the latest generation of iPhone 16 devices in India. This acquisition aligns with Tata’s broader strategy of deepening its footprint in electronics manufacturing, including plans to produce semiconductors within the country.
Negotiations between Pegatron and Tata Electronics, a subsidiary of the Tata Group, had been ongoing for the past year. Pegatron reportedly sought an Indian partner due to the slim profit margins in electronics manufacturing and challenges related to labor management. Pegatron’s existing factory in Tamil Nadu currently employs around 10,000 workers and produces approximately five million iPhones annually.
The deal also paves the way for future collaborations, with Tata and Pegatron potentially partnering on a new factory in Hosur, Tamil Nadu.
India has been emerging as a crucial manufacturing hub for Apple as the tech giant seeks to diversify its supply chain beyond China. Pegatron accounted for around 10% of Apple’s India production last year. Meanwhile, Tata’s acquisition of Wistron’s iPhone manufacturing plant in Karnataka marked another milestone in Apple’s efforts to localize its production.
Apple’s India manufacturing is projected to contribute nearly 24% to the company’s global iPhone production this year double last year’s share. With Tata and Foxconn expected to ramp up their investments aggressively, India is poised to play an increasingly pivotal role in Apple’s global manufacturing strategy.
In 2020, Wistron faced violent protests at its Karnataka factory, with workers vandalizing property and targeting senior officials. Despite such setbacks, Apple’s manufacturing partners are doubling down on their India investments, buoyed by the government’s Production-Linked Incentive (PLI) schemes and the country’s growing importance in the global electronics supply chain.
