According to a Reuters report, India's Tata Electronics has agreed to acquire a majority stake in Taiwanese contract manufacturer Pegatron’s sole iPhone production facility in the country, establishing a joint venture to strengthen Tata’s role as an Apple supplier.  Under the agreement, Tata Electronics will own a 60 percent stake and manage daily operations, while Pegatron will retain a 40 percent stake, providing technical expertise. The move follows reports in April that Pegatron, with Apple’s backing, was in advanced talks to sell the plant, reflecting a further reduction in Pegatron’s Apple-related operations.  

Apple is increasingly diversifying its supply chain outside China due to rising geopolitical tensions between Beijing and Washington. For Tata, the Pegatron plant in Chennai represents a significant boost to its iPhone manufacturing ambitions.  A major Indian conglomerate, Tata has been expanding its footprint in iPhone production, positioning itself as a rival to Foxconn, the only other iPhone contract manufacturer in India. Tata already operates an iPhone assembly facility in Karnataka, acquired last year from Taiwan’s Wistron, and is constructing another in Hosur, Tamil Nadu.

Additionally, the company owns an iPhone components plant in Tamil Nadu, which experienced a fire incident in September.  Analysts project India will account for 20–25 percent of global iPhone shipments in 2024, a rise from 12–14 percent in 2023. The Tata-Pegatron plant, which employs approximately 10,000 people and produces 5 million iPhones annually, will become Tata’s third iPhone manufacturing facility in India.