Two sources familiar with the matter revealed that Pegatron is in advanced discussions to transfer control of its sole iPhone manufacturing facility in India to the Tata Group, marking the Taiwanese company’s latest move in scaling back its partnership with Apple. Under the proposed deal, which has Apple’s approval, Tata intends to hold a minimum 65% stake in a joint venture that will operate Pegatron’s plant near Chennai in Tamil Nadu. Pegatron will provide technical support and retain the remaining stake. Tata, one of India’s largest conglomerates, will manage the joint venture through its Tata Electronics unit. The Pegatron facility in India employs approximately 10,000 workers and produces 5 million iPhones annually. Following the transfer of control, it will be the last iPhone manufacturing facility operated by Pegatron, following its relinquishment of an iPhone plant in China to Luxshare in a $290 million agreement last year. Both Tata and Pegatron declined to comment on the negotiations, while Apple refrained from providing a comment. Financial details of the ongoing discussions were not disclosed. With increasing geopolitical tensions between China and the United States, Apple is diversifying its supply chain beyond China, and the partnership with Tata will support its iPhone manufacturing plans in India. Tata already operates an iPhone assembly plant in Karnataka, which it acquired from Wistron last year, and is constructing another facility in Hosur, Tamil Nadu, where Pegatron is expected to become its joint venture partner. Pegatron is also constructing another iPhone factory at its Chennai campus, and discussions between Tata and Pegatron include the possibility of taking over this facility as well. The negotiations between Tata and Pegatron for the factory are anticipated to conclude within six months, with all Pegatron India employees expected to transition to the joint venture entity. In India, Apple’s iPhone contract manufacturers include Tata, Pegatron, and Foxconn. Tata’s involvement is crucial to Apple’s expansion efforts in India, with analysts estimating that the country will account for 20-25% of total iPhone shipments this year, compared to 12-14% last year. The reasons behind Pegatron’s gradual withdrawal from its Apple business, including in India, remain undisclosed, although Pegatron previously stated that the China plant deal aimed to optimize its business and raise capital.
