This move marks another significant step for the conglomerate in bolstering its role within the global iPhone production ecosystem.
Following its acquisition of Wistron's iPhone facility in Karnataka, Tata Group is extending its manufacturing footprint to Tamil Nadu, engaging in advanced negotiations to take over at least 65% of Pegatron's facility near Chennai. Pegatron, which has its sole Indian iPhone manufacturing unit at this location, is expected to remain as a partial stakeholder, contributing technical support to the venture.
The deal, reportedly greenlit by Apple, implicates the transition of approximately 10,000 employees and involves a production capacity of about five million iPhones annually. This strategic move not only strengthens Tata's position in the tech manufacturing sector but also aligns with Apple's broader strategy to diversify its production base amid evolving global supply chain dynamics.
With an eye on future expansion, Tata is simultaneously developing a new manufacturing site within Tamil Nadu, mere miles from the acquired Pegatron facility. Pegatron's involvement is anticipated to extend to this new plant once construction concludes, further cementing the partnership between the two entities.
This development is part of a larger investment narrative in Tamil Nadu, with Pegatron committing $120 million and Tata Group earmarking $1.4 billion for regional investments earlier in the year. As Tata Group consolidates its presence in iPhone manufacturing, this move is poised to have a considerable impact on India's position in the global tech manufacturing landscape, offering new opportunities for growth and collaboration within the sector.
