Tata Electronics agreed to acquire a 60% stake in Pegatron’s three iPhone assembly facilities in India, accelerating Apple’s push to expand its supply chain beyond China.
The move strengthens Tata’s position as a key iPhone supplier in India, second only to Foxconn. Pegatron’s management and technical staff will remain to support operations at the facilities, which employ over 10,000 workers.
Tata Electronics CEO Randhir Thakur said the deal aligns with the company’s manufacturing expansion strategy. The acquisition follows Tata’s 2023 purchase of Wistron’s Bangalore iPhone plant, reflecting Apple’s efforts to cultivate local suppliers in India similar to its approach with Luxshare in China.
The deal comes as Apple faces growing challenges in China, where its revenue contribution dropped to 17% in fiscal 2024 from 19% the previous year. Chinese authorities recently increased scrutiny of U.S. companies’ equipment exports to India and Vietnam, while raising security concerns about iPhones.
Pegatron, which generates NT$1 trillion ($30.6 billion) in annual revenue, has been reducing its China manufacturing presence and Apple supply chain exposure. The company is shifting focus to AI servers and electric vehicles amid declining smartphone industry margins.
