The Competition Commission of India (CCI) has approved Tata Electronics Pvt. Ltd. (TEPL) to acquire a controlling interest in Pegatron Technology, a Taiwanese firm specialising in contract manufacturing and a key supplier of Apple iPhones. A wholly-owned subsidiary of Tata Sons, TEPL is renowned for manufacturing high-precision components for large-scale clients. According to the CCI's statement, the acquisition will be executed in two phases, enabling TEPL to secure a majority share in Pegatron India.

TEPL’s electronics manufacturing services expansion

TEPL, operating under Tata Electronics Systems Solutions (formerly Wistron Infocomm Manufacturing), is actively involved in providing electronics manufacturing services (EMS) for smartphones. This acquisition aligns with TEPL’s broader objective to enhance its capabilities in smartphone production.

Details of Pegatron India’s operations

In November last year, reports indicated that Tata Electronics aimed to acquire a 60% stake in Pegatron India, a subsidiary of Pegatron Corporation. Pegatron India specializes in EMS for smartphones, including Apple’s iPhones, and exports products to regions such as North America, Asia, and Europe.

Chennai plant: A hub for iPhone production

Pegatron India’s sole manufacturing facility in Chennai employs approximately 10,000 workers and produces around five million iPhones annually. The acquisition is poised to bolster TEPL’s manufacturing footprint and further its role in the global smartphone supply chain.