In a move indicative of Apple’s expanding manufacturing presence in India, Tata Group is in negotiations to take over Pegatron’s iPhone manufacturing facility near Chennai.
The deal, if finalized, would mark a milestone in Tata’s electronics venture. Tata Group has acquired Wistron’s India operations last year.
According to IDC report, Apple has shipped 234.6 million iPhones in 2023 as compared with 226.3 million in 2022.
Pegatron said its revenue totaled NT$342 billion in 4Q 2023 and increased by 8 percent QoQ, mainly attributable to peak season from Communication Segment.
Tata Group could potentially hold a 65 percent stake in a joint venture aimed at operating the Pegatron plant. The discussions suggest Tata Group’s eagerness to solidify its position in the Indian electronics manufacturing business, Reuters news report said.
The proposed joint venture is expected to be managed through Tata Electronics, the conglomerate’s dedicated unit for electronics manufacturing. Pegatron’s facility in India currently boasts a workforce of approximately 10,000 employees and is responsible for the production of iPhone 13 and 14 devices.
This potential acquisition aligns with Tata Group’s strategic expansion plans in the electronics sector. In December of the previous year, reports emerged detailing Tata Group’s ambitions to establish one of India’s largest iPhone assembly plants in Hosur, Tamil Nadu.
The proposed facility, set to feature around 20 assembly lines, aims to employ up to 50,000 workers within two years of operation, with expectations of becoming operational within the next 12 to 18 months.
Tata Group currently operates an iPhone manufacturing plant in Karnataka, which was acquired from Wistron.
Apple’s aim to manufacture over 50 million iPhones annually in India reflects its commitment to diversify production away from China. The Indian government’s initiatives, particularly the Production Linked Incentive (PLI) scheme for smartphone manufacturing, have played a pivotal role in attracting global electronics giants to India.
TelecomLead.com News Desk
