Tata Electronics will Purchase a 60% Share in the iPhone Plant in Tamil Nadu

Nitin Konde, Varun Bhardwaj

Nov 18, 2024 — 3 min read

Tata Electronics Acquires 60% Stake in Tamil Nadu iPhone Plant

According to a media citation, Tata Electronics plans to establish a new joint venture (JV) to purchase a 60% majority stake in Taiwanese contract manufacturer Pegatron's iPhone facility in Tamil Nadu. According to the report, the action will improve Tata's standing as an Apple supplier in its supply chain in India.

Partnership Plan

According to the plan, Pegatron would own the remaining 40% of the joint venture and offer technical support, while Tata Electronics would own 60% and manage day-to-day operations.

The report added that the sources did not go into detail about the financial components of the arrangement, stating that details are not yet public. Internally, inside the iPhone plant, the contract was announced on November 15. Tata and Pegatron would submit a request for permission to the Competition Commission of India (CCI) "in the coming days."

Tata Has Become Preferred Partner of iPhone

According to a media outlet in April, Pegatron is in advanced negotiations to sell the Tata Group its sole iPhone production facility in India, which is located close to Chennai.

Apple has supported the purchase, sources informed the agency at the time. About 10,000 people work at Pegatron's India plant, which produces 5 million iPhones a year. Tata is currently establishing an iPhone assembly factory in Hosur, Tamil Nadu, where Pegatron is anticipated to become a joint venture partner. The company already runs an iPhone assembly unit in Karnataka, which it acquired from Taiwan's Wistron last year.

In Light of the US-China Trade Tensions, Apple May Boost iPhone Manufacturing in India

According to a report by a renowned media outlet, if US President Donald Trump fulfills his warning of enacting high taxes on Chinese imports, Apple Inc. could dramatically expand its iPhone manufacturing in India, possibly reaching $30 billion yearly over the next two years.

The current estimated yearly value of Apple's iPhone production in India is $15–16 billion. However, Apple may decide to move more manufacturing operations to India in response to Trump's earlier warnings to put 60–100% taxes on Chinese goods, a position he reaffirmed during his campaign. According to the source, Trump imposed tariffs on Chinese goods during his first term, and analysts think he could use a similar tactic in his second term to strengthen India's position in Apple's global production network. A large rise in iPhone manufacturing might improve trade dynamics overall and cement Indo-US economic ties. According to the analysis, the electronics sector in India, especially the production of iPhones, stands to gain significantly, even though other industries may see difficulties.

According to an official cited in the report, a possible boost in iPhone production may greatly benefit India, particularly in the electronics sector. According to experts, Apple may decide to move a sizable amount of its iPhone manufacturing to India as a result of Trump's tariff policies, especially those pertaining to Chinese imports. Such a move would probably result in the creation of up to 200,000 new jobs and increase India's manufacturing share of iPhones from the current 12 to 14% to over 26% in the upcoming years.