Tata acquires second iPhone maker, Pegatron, boosts EMS play

This landmark acquisition marks Tata Electronics' second major foray into iPhone assembly in under a year, following its acquisition of Wistron's India operations in March 2024.

Shruti ShiraguppiBy Shruti Shiraguppi calendar 24 Jan 2025 Views icon3961 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Tata acquires second iPhone maker, Pegatron, boosts EMS play

In a move that further solidifies its ambitions in the global electronics manufacturing sector, Tata Electronics Private Limited (“TEPL”) announced today the acquisition of a controlling 60% stake in Pegatron Technology India Private Ltd (“PTI”), a contract manufacturer of iPhones in India. This landmark acquisition marks Tata Electronics' second major foray into iPhone assembly in under a year, following its acquisition of Wistron's India operations in March 2024.

The deal underscores Tata Sons' Chairman, N Chandrasekaran's, vision of significant investments by the Tata Group in electronics manufacturing, positioning India as a key hub in the global supply chain. As part of the acquisition, TEPL and PTI will focus on integrating their teams to facilitate a seamless transition. PTI will undergo rebranding to reflect its new ownership structure while continuing to provide high-quality electronics manufacturing services.

This acquisition of PTI, a major contract manufacturer for Apple, significantly strengthens TEPL's position as a key player in the Indian electronics manufacturing sector and enhances its capabilities in producing iPhones.  This strategic move positions Tata as a key player in the global electronics supply chain, particularly within the Apple ecosystem.

N Chandrasekaran, Chairman of Tata Sons, envisions substantial investments in electronics manufacturing as key to India's future growth. He sees this sector as a major driver of job creation and technological advancement. 

Tata Electronics Pvt acquired Wistron's India operations in March 2024, marking a significant step for India's electronics manufacturing ambitions. The deal, valued at approximately $125 million, saw Tata take over Wistron's iPhone assembly plant in Narsapura, Karnataka. This acquisition made Tata the first Indian company to assemble iPhones, joining the ranks of giants like Foxconn and Pegatron.

Randhir Thakur, CEO & MD of Tata Electronics, said the latest move is in keeping with the company’s plans to enter a new era of “AI, digital, and technology-led manufacturing” as it brings up these new facilities and expands its operations in India.

Industry analysts believe this move not only benefits Tata Electronics but also significantly boosts India's "Make in India" initiative. The increased presence of a large, trusted Indian conglomerate in this sector is expected to attract further investment and contribute to the growth of a robust domestic electronics manufacturing ecosystem.

Established in 2020 as a greenfield venture of the Tata Group, Tata Electronics Pvt. Ltd. is rapidly emerging as a global leader in electronics manufacturing. The company focuses on Electronics Manufacturing Services, Semiconductor Assembly & Test, Semiconductor Foundry, and Design Services.  

The company has a workforce of over 50,000 employees and significant operations in Gujarat, Assam, Tamil Nadu, and Karnataka, Tata Electronics.

Tata also has plans for semiconductor fabrication, assembly and testing facilities, and design houses, aiming to capture a significant share of the growing electronics market.

Apple's over-reliance on China for manufacturing has been a longstanding concern, prompting the tech giant to accelerate diversification efforts in 2024. Motivated by geopolitical tensions, economic considerations, and a desire to mitigate risk, Apple pursued a two-pronged strategy:

Firstly, Apple actively shifted production to alternative locations. This included a significant expansion of iPhone assembly in India through partnerships with Foxconn, Pegatron, and Wistron, further incentivized by the Indian government's "Make in India" initiative.  

Concurrently, Apple augmented production of AirPods and other components in Vietnam, capitalizing on its burgeoning manufacturing sector. Furthermore, the company explored opportunities in other Southeast Asian countries like Thailand and Malaysia to further decentralize its production base.

Secondly, Apple sought to reduce its dependence on Chinese suppliers. This involved actively sourcing key components like batteries, displays, and chips from suppliers outside of China. Additionally, Apple increased investment in research and development to facilitate the in-house design and manufacture of more components.

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