In a significant move in the tech industry, Pegatron, a Taiwanese electronics manufacturer, is reportedly finalizing negotiations to transfer control of its sole iPhone manufacturing unit in India to the Tata Group. This development, as detailed by Reuters citing informed sources, represents Pegatron’s continuing strategy to scale back its operations with Apple. This follows its previous deal where it sold an iPhone facility in China to Luxshare for $290 million.
The deal under discussion would see Tata owning at least 65% of a joint venture managing the Pegatron facility near Chennai, Tamil Nadu, with the endorsement from Apple. Pegatron would retain a minority stake, continuing to provide technical support. This facility, which employs about 10,000 workers and produces 5 million iPhones annually, is crucial for Pegatron after exiting China.
This strategic move is part of a broader attempt by Apple to diversify its production base away from China amidst increasing U.S.-China tensions. For Tata, this acquisition would not only enhance its capabilities in iPhone manufacturing—complementing its existing operations in Karnataka and an upcoming site in Hosur, Tamil Nadu—but also solidify its position in the global tech manufacturing landscape.
Moreover, Pegatron is also constructing another iPhone factory on its Chennai campus, which Tata might take over as part of this deal. The discussions are expected to wrap up within six months, with all Pegatron India employees transitioning to the new joint venture.
This proposed acquisition highlights the shifting dynamics within the tech manufacturing sector and India’s rising prominence as a major hub for iPhone production.
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