Tata Electronics Secures Majority Stake in Pegatron India with 60% Acquisition

In a landmark development, Tata Electronics announced the acquisition of a controlling 60% stake in Pegatron Technology India. This acquisition strengthens Tata Electronics’ presence in the electronics manufacturing services (EMS) sector and aligns with the Indian government’s ‘Make in India’ initiative. Pegatron India, a subsidiary of Taiwan-based Pegatron Corporation, plays a key role in Apple’s global supply chain, particularly in the production of iPhones for North America, Asia, and Europe.

A Major Step After Wistron Acquisition

This move comes on the heels of Tata Electronics’ acquisition of Wistron’s India operations for $125 million in March 2024. The Wistron plant in Narsapura, Karnataka, is now a key asset in Tata’s portfolio, assembling Apple iPhones. Additionally, Tata Electronics operates an iPhone component plant in Hosur, Tamil Nadu, further underscoring its commitment to electronics manufacturing.

Collaboration and Integration with Pegatron

As part of the agreement, Tata Electronics and Pegatron will integrate their teams to enhance operational synergy. Pegatron India will undergo rebranding to align with its new ownership and business direction. Dr Randhir Thakur, CEO and MD of Tata Electronics highlighted the strategic importance of this acquisition, stating, “The acquisition of a majority stake in Pegatron Technology India Private Limited fits into Tata Electronics’ strategy of growing our manufacturing footprint.”

Impact on Employment and Local Manufacturing

Pegatron India’s facility currently employs nearly 10,000 people and is involved in manufacturing iPhone 13 and 14 devices. Tata Electronics, established in 2020, already employs over 50,000 individuals across its operations in Gujarat, Assam, Tamil Nadu, and Karnataka.

Government Approvals and Industry Support

The Competition Commission of India recently approved this deal, including the transfer of TEL Components Pvt Ltd’s business undertaking to Pegatron India. This regulatory clearance marks a critical step in Tata Electronics’ effort to expand its role in India’s growing electronics manufacturing ecosystem.

India’s iPhone Export Growth and PLI Scheme Benefits

India’s role as a global hub for iPhone production continues to grow, supported by the government’s production-linked incentive (PLI) scheme. Apple’s iPhone exports from India reached an impressive ₹1 lakh crore in 2024, representing a 40% year-on-year growth. Domestic production also surged by 46%, reflecting a strong upward trend in local manufacturing.

A New Chapter in Apple’s Supply Chain

With this acquisition, Tata joins Foxconn and Pegatron as a key iPhone contract manufacturer in India. This collaboration not only enhances Tata Electronics’ standing in the EMS space but also positions India as a pivotal player in Apple’s global supply chain.

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