Tata Electronics, a key player in India’s electronics manufacturing ecosystem and a wholly owned subsidiary of Tata Sons, has taken another significant step toward strengthening India’s role in global smartphone production. The company has reportedly finalized a deal to acquire a majority stake in Taiwanese contract manufacturer Pegatron’s iPhone assembly plant in India.
This strategic acquisition underscores Tata Group’s growing ambitions in the high-value smartphone manufacturing industry, aligning with India’s broader “Make in India” initiative and the government’s Production-Linked Incentive (PLI) scheme for electronics manufacturing. By acquiring Pegatron’s Indian operations, Tata Electronics cements its position as a major partner for Apple, expanding its presence in the premium smartphone segment.
Expanding Apple’s India Manufacturing Base
Apple has been steadily diversifying its global supply chain and reducing its reliance on China by ramping up operations in India. Pegatron, one of Apple’s top contract manufacturers, had already established an iPhone production base in Tamil Nadu, where it assembled models catering both to domestic consumption and export markets. With Tata Electronics acquiring a majority stake, the Indian conglomerate is set to deepen its relationship with Apple and enhance India’s positioning as a global hub for iPhone production.
Industry experts see this acquisition as a landmark moment, as it signals the first time an Indian company has taken significant control of an Apple contract manufacturer’s facility in the country. This move not only benefits Tata Electronics’ long-term growth but also strengthens Apple’s India strategy, which aims to localize production, reduce supply chain risks, and meet the surging demand for iPhones globally.
Tata Electronics’ Growing Ambitions
Over the past few years, Tata Electronics has been aggressively investing in electronics manufacturing, particularly in the smartphone ecosystem. The company has already been assembling iPhones at its Karnataka facility and supplying components such as metal casings. With the acquisition of Pegatron’s plant, Tata will significantly scale up production capacity, create more jobs, and build deeper capabilities in the value chain.
“This acquisition reflects Tata Electronics’ commitment to becoming a global leader in electronics manufacturing. By strengthening our partnership with Apple, we are contributing not only to India’s manufacturing capabilities but also to the growth of high-tech exports from India.”
Boost to India’s Manufacturing Ecosystem
The acquisition comes at a crucial time when India is rapidly emerging as a manufacturing alternative for global technology giants. Government policies such as the PLI scheme, coupled with the availability of skilled manpower and expanding infrastructure, have made India a preferred destination for smartphone production.
The deal is expected to create thousands of direct and indirect jobs in Tamil Nadu, further boosting local employment and skills development. Moreover, the increased scale of operations will enable India to capture a larger share of the global smartphone supply chain.
Analysts believe this transaction will encourage other global electronics manufacturers to deepen their engagement in India through local partnerships and investments.
A Win-Win for Apple, Tata, and India
For Apple, Tata Electronics’ acquisition of Pegatron’s Indian operations ensures a more stable and long-term partnership with a trusted Indian conglomerate. It allows Apple to align its India strategy with a partner that has extensive industrial expertise, global credibility, and a strong reputation for governance.
For Tata Group, the acquisition represents a major milestone in its journey to become a global contract manufacturing leader, diversifying from its traditional businesses into high-technology sectors.
For India, this move reinforces its status as one of the fastest-growing hubs for electronics and smartphone manufacturing. It strengthens the government’s vision of turning India into a global manufacturing powerhouse and boosts the country’s export potential.
The Road Ahead
The integration of Pegatron’s iPhone plant under Tata Electronics is expected to accelerate production capacity and efficiency. With Apple’s rising sales in India and the company’s intent to make India a critical part of its global production base, the Tata-Pegatron deal positions India at the center of the next phase of smartphone manufacturing growth.
Industry watchers anticipate that Tata Electronics may continue to explore further opportunities to expand its electronics manufacturing footprint, not just in smartphones but also across other consumer electronics and semiconductor segments.
The acquisition of a majority stake in Pegatron’s iPhone plant marks a historic step for Tata Electronics, Apple, and India. It signifies the growing maturity of India’s electronics manufacturing ecosystem and sets the stage for even greater global integration. As Tata Group continues to leverage its strengths to build world-class facilities and partnerships, India’s rise as a global hub for premium smartphone manufacturing appears stronger than ever.
