Tata Joins iPhone Manufacturing Race in India

Tata Electronics has made a significant leap in the race to manufacture iPhones. The company has acquired a major stake in the Tamil Nadu plant of Taiwan-based contract manufacturer Pegatron, which assembles iPhones. This development is expected to accelerate iPhone production in India. However, neither Tata Electronics nor Pegatron has officially commented on the deal.

Reports suggest that Tata Electronics is likely to hold a 60% stake following the deal, forming a joint venture with Pegatron for iPhone production. The transaction is estimated to cost Tata Group between $150 million and $200 million. Together with Pegatron and Wistron, Tata aims to boost iPhone manufacturing in India. Currently, Foxconn, another Taiwanese company, holds the primary contract for assembling iPhones.

Apple’s contract manufacturers currently have the capacity to produce 40 million iPhones annually, with a monthly production of around 30 to 35 million units. This new deal could enhance manufacturing efficiency and strengthen the supply chain outside China, a strategic move amid ongoing geopolitical tensions. It could also help meet the growing demand for iPhones in India and neighboring countries, where Apple has seen a significant rise in demand in recent months.

Tata Group is also implementing a multi-partner strategy to manufacture iPhone components. Pegatron, which employs 9,500 workers in India, currently produces about 4.5 million iPhones annually. Since 2022, Pegatron has been the world’s second-largest iPhone manufacturer.

The Indian government’s Production Linked Incentive (PLI) scheme, designed to boost local manufacturing, is likely to benefit Tata and Pegatron. With the acquisition of Wistron’s iPhone assembly plant, Tata Group has become the first Indian company to join the ranks of global iPhone manufacturers, expanding its portfolio beyond industries like steel and salt.