Tata Electronics acquires 60% in Pegatron India, bags iPhone plant

The announcement is coming after the Competition Commission of India (CCI) gave an approval to Tata Electronics to acquire the majority stake in the company

Tata Electronics announced on Friday its acquisition of a controlling 60 per cent stake in Pegatron Technology India Private Limited — a subsidiary of Taiwanese electronics manufacturing giant Pegatron Corporation . This development, according to people aware of the matter, will significantly narrow Tata Electronics’ production value gap with Foxconn in assembling iPhones for Apple Inc in the country.  

  The long-anticipated acquisition and control of Pegatron’s iPhone plant near Chennai follows the Tatas’ purchase of another Taiwanese OEM player Wistron’s facility in Narsapura (Karnataka) in March 2024, which also assembled iPhones.

  According to vendor data submitted to the government and states for 2024, the total production value of iPhones assembled in India reached approximately Rs 1,50,000 crore: Foxconn accounted for a production value of around Rs 84,000 crore (56 per cent of the total), Tata Electronics contributed Rs 40,000 crore (26 per cent), and Pegatron made up the remainder.

  With the latest acquisition, Tata Electronics’ combined production value share is set to rise to 44 per cent, significantly closing the gap with Foxconn, another Taiwanese behemoth.  

 

The acquisition will also bolster Tata Electronics’ workforce, adding 17,000 direct employees from Pegatron and increasing its total direct workforce to 48,000. This expansion positions Tata Electronics to capture a larger share of iPhone exports. In 2024, the company’s share of total iPhone exports from India stood at 29 per cent, which is now expected to increase to 48 per cent with the addition of Pegatron’s 19 per cent share.   

  Commenting on the acquisition in a press release, Randhir Thakur, CEO and managing director of Tata Electronics, said: “The acquisition of a majority stake in Pegatron Technology India Private Limited fits into Tata Electronics’ strategy of growing our manufacturing footprint. We look forward to a new era of AI, digital, and technology-led manufacturing as we bring up these new facilities and expand our operations in India.”  

  Tata Electronics, however, declined to comment on an e-mail by Business Standard for further details.

  Experts following the development suggest that Pegatron had slowed its iPhone production pace in India during acquisition negotiations. The takeover is expected to accelerate production, potentially equalising iPhone production value between the Tatas and Foxconn.  

  In addition, Tata Electronics is investing in a new iPhone plant in Hosur, Tamil Nadu, which is expected to commence commercial production later this year, further enhancing its capacity. Foxconn, meanwhile, has announced a $2 billion investment in India to strengthen its position as a manufacturing hub.  

  As part of the deal, Tata Electronics will integrate its teams with Pegatron’s to ensure seamless operations. The Pegatron facility will undergo rebranding to reflect its new ownership structure while maintaining its commitment to high-quality electronics manufacturing.  

  Tata Electronics – which earlier was just a supplier of enclosures for iPhones — has made remarkable strides in its output, pushing up the production value of assembling iPhones from Rs 14,300 crore in 2023 to Rs 40,000 crore in 2024 — a 180 per cent increase.