Pegatron To Handover TATA Its Only iPhone Plant in India

Taiwanese electronics giant Pegatron is in advanced talks with the Tata Group to hand over control of its only iPhone manufacturing facility in India, Reuters reported on Monday. Tata is seeking at least a 65% stake in the joint venture that will operate the Pegatron plant near Chennai. The Taiwanese firm will provide technical support while keeping the remaining stake. Analysts estimate the Apple-backed deal will contribute 20-25% of total iPhone shipments this year, from 12-14% last year. The joint venture will be operated under Tata’s Electronics Unit. The Pegatron factory, which employs around 10,000 people, currently produces 50 lakh iPhones annually. The Taiwanese firm forfeited control of an iPhone plant in China to rival Luxshare in a $290 million deal last year. Apple, headquartered in Cupertino, has been actively seeking to diversify its iPhone supply chain beyond China due to ongoing geopolitical tensions between Beijing and Washington DC. In India, the Chennai Pegatron plant will strengthen its iPhone manufacturing plans. Tata already operates an iPhone assembly plant in Karnataka, which it acquired from Taiwan’s Wistron last year. 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