The Tata Group is nearing a deal to assume control of Pegatron Corp.’s iPhone manufacturing operations in India, possibly by May, solidifying Apple Inc.’s association with one of the nation’s most influential conglomerates.
Tata Group is in the final phases of discussions with Pegatron to acquire a majority stake in the Taiwanese company’s Apple handset assembly operations in India. This includes an iPhone production facility near Chennai in Tamil Nadu and another one under construction.
Upon completion of the deal, Pegatron is expected to provide Tata with manufacturing expertise. Tata Electronics Ltd. will oversee Pegatron’s operations post-acquisition.
Representatives for Tata and Pegatron declined to comment on the matter.
This potential agreement aligns with Apple’s strategy to increase production in India, leveraging incentives from Prime Minister Narendra Modi’s government and diversifying its supply chain beyond China for geopolitical risk mitigation.
Under Modi’s leadership, production-linked subsidies have been extended to key Apple suppliers like Foxconn Technology Group and Pegatron to boost manufacturing in India.
Tata Group entered the iPhone assembly realm by acquiring an iPhone factory from Wistron Corp. in Karnataka. Additionally, they plan to establish a new iPhone production facility to strengthen their partnership with Apple.