Tata Electronics Acquires 60 Percent Stake in iPhone Maker Pegatron Technology India

On Friday, Tata Electronics Pvt Ltd (TEPL) revealed that it has obtained a controlling 60 percent share in Pegatron’s India unit, a Taiwanese contract manufacturer, reinforcing its role as a significant entity in the Indian electronics manufacturing industry. Financial specifics of the deal were not revealed. Pegatron India, a subsidiary of the Taiwanese Pegatron Corporation, provides contract-based electronics manufacturing services (EMS) to major global companies, including Apple.

The recent agreement is anticipated to reinforce Tata’s role as an Apple supplier and enhance its iPhone production strategies.

Tata Electronics announced that it has acquired a 60 per cent stake, stating that Pegatron Technology India will be rebranded to mirror its new ownership structure and business strategy, while still providing high-quality electronics manufacturing services.

The recent action by the electronics division of the salt-to-software conglomerate comes after its purchase of Wistron’s operations in India (located in Narsapura, Karnataka) not long ago in March 2024. Indeed, in his New Year address to staff, Tata Sons Chairman N Chandrasekaran emphasized that as global supply chains increasingly favor India, the manufacturing sector has the ability to revolutionize the nation’s economy amid the world’s largest companies finding a new equilibrium between resilience and efficiency.

Chandrasekaran described it as “a new golden era of manufacturing for India.”

On Friday, Randhir Thakur, CEO and MD of Tata Electronics, stated that the purchase of a majority interest in Pegatron Technology India aligns with Tata Electronics’ plan to expand its manufacturing presence. Alongside TEPL acquiring a majority interest in Pegatron Technology India, both companies will collaborate on merging their teams for smooth operations. Tata Group has been developing an assertive plan for electronics and semiconductor production.

Tata Electronics is establishing India’s inaugural Fab in Dholera, Gujarat, with an overall investment of Rs 91,000 crore. Moreover, an additional Rs 27,000 crore will be allocated for a greenfield facility in Jagiroad, Assam, dedicated to the assembly and testing of semiconductor chips. Collectively, these facilities will manufacture semiconductor chips for use in automotive, mobile devices, artificial intelligence (AI), and other important sectors to cater to customers worldwide.

In October of the previous year, Chandrasekaran stated that Tata Group plans to generate 5 lakh manufacturing jobs in the upcoming five years in fields like semiconductors, electric vehicles, batteries, and associated industries.  Tata Sons’ chief executive claimed that India will not meet its objectives of becoming a developed nation if it fails to generate manufacturing employment opportunities.