Tata Electronics Acquires 60% stake in iPhone Plant- In a strategic move, Tata Electronics has acquired a 60% stake in Pegatron’s iPhone manufacturing plant in Tamil Nadu. This deal marks a significant milestone in India’s growing importance as a global hub for iPhone production. Tata will oversee the plant’s daily operations, while Pegatron retains a 40% stake to provide technical expertise.
Key Details of the Tata-Pegatron Deal
This acquisition boosts Tata’s capabilities as an Apple supplier and helps Apple diversify its supply chain away from China due to geopolitical tensions.
| Aspect | Details |
| Ownership Structure | Tata: 60%, Pegatron: 40% |
| Plant Location | Chennai, Tamil Nadu |
| Production Capacity | 5 million iPhones annually |
| Workforce | Around 10,000 employees |
| Tata’s Role | Manages daily operations |
| Pegatron’s Role | Provides technical support |
Tata’s Expanding Role in iPhone Manufacturing
Tata Electronics is fast becoming a major player in Apple’s supply chain.
- Existing Operations: Tata operates an iPhone assembly plant in Karnataka and is building another facility in Hosur, Tamil Nadu.
- Strategic Importance: With this acquisition, Tata is now a key rival to Foxconn, Apple’s largest contract manufacturer.
- Boost to Production: India is projected to contribute 20-25% of global iPhone shipments this year, a sharp rise from 12-14% in 2023.
Why Apple is Shifting iPhone Production to India
Apple is diversifying its manufacturing footprint due to:
- Geopolitical Tensions: U.S.-China trade conflicts are pushing Apple to reduce dependency on Chinese suppliers.
- India’s Growing Market: India offers a stable production environment and access to a rapidly growing smartphone market.
- Increased Efficiency: Partnerships like Tata-Pegatron ensure a reliable and scalable production base.
Tata Electronics Acquires 60% stake in iPhone Plant- Impact
- Strengthened Indian Supply Chain: This deal further positions India as a global hub for electronics manufacturing.
- Enhanced Job Opportunities: With around 10,000 employees, the Chennai plant contributes significantly to local employment.
- Competition Intensifies: Tata now directly competes with Foxconn, driving innovation and efficiency in iPhone manufacturing.
Tata Electronics Acquires 60% stake in iPhone Plant -Summary
- What’s Happened? Tata Electronics has acquired a 60% stake in Pegatron’s iPhone plant in Chennai.
- Why It’s Important? The deal strengthens Tata’s position as an Apple supplier and boosts India’s role in global iPhone production.
- Who’s Involved? Tata (60% stake) manages operations; Pegatron (40%) offers technical expertise.
- What’s Next? India is expected to contribute 20-25% of global iPhone shipments in 2024.
- Competition: Tata’s acquisition places it alongside Foxconn as a leading Apple supplier in India.
Also Read Latest Current Affairs 2024
AAP’s Mahesh Kumar Khichi Elected as Delhi Mayor
FAQs About Tata Electronics and Pegatron Deal
Tata Electronics acquired a 60% stake in Pegatron’s iPhone manufacturing plant in Chennai, Tamil Nadu, to boost India’s role in Apple’s global supply chain.
The plant is in Chennai, Tamil Nadu, and produces 5 million iPhones annually.
Apple is diversifying its supply chain due to geopolitical tensions between the U.S. and China, and India provides a stable and growing manufacturing environment.
Tata Electronics manages the day-to-day operations of the plant, while Pegatron provides technical expertise.
Tata operates two existing iPhone plants in Karnataka and Tamil Nadu, with another facility under construction in Hosur.
India is projected to contribute 20-25% of global iPhone shipments in 2024, compared to 12-14% last year
Foxconn is Tata’s main competitor in India for iPhone production
