NEW DELHI: After taking over the iPhone assembly plant of Wistron in 2023, Tata Group is all set to take control of another iPhone manufacturing facility owned by Pegatron in the country.
Tata is reportedly planning to hold at least a 65% stake in a joint venture that will operate the Pegatron plant near Chennai.
The report, citing two sources, mentioned that a Taiwanese firm, Pegatron, will provide technical support. Tata, one of the largest conglomerates in India, will operate the joint venture through its Tata Electronics unit. The deal is said to get the backing of Apple Inc. The talks between Tata and Pegatron for the factory are expected to close in six months and will see all Pegatron India employees move to the joint venture entity.
In India, iPhone is manufactured by three contract manufacturers: Foxconn, Pegatron Corp, and Tata Group (earlier Wistron Corp). Currently, the Pegatron India factory
has nearly 10,000 employees and makes 5 million iPhones annually. It is the last such facility operated by the firm after it forfeited control of an iPhone plant in China last year to rival Luxshare in a $290 million deal.
Last year, Tata Group had acquired Taiwan’s Wistron plant in Karnataka, and the company is also building another plant in Hosur in Tamil Nadu. The report noted that Tata has been building another iPhone factory at its Chennai campus, and the Tata deal talks include taking over that facility as well.
The American tech giant is trying to diversify its production from China to India due to geopolitical tensions between Beijing and Washington. Last year, Commerce minister Piyush Goyal said Apple will start 25% of total iPhone production in India by 2023. Meanwhile, Apple’s market share in India grew from 4.6% in 2022 to 6.4% in 2023, a 38.6% increase. Tata has partnered with Apple to launch 100 retail stores for its products across the country.
Tata Group, which is also setting up two semiconductor plants in the country, is reportedly looking to rope in top talent from Taiwan. Taiwan currently produces over 50% of the world’s semiconductors and chips. Tata Electronics will conduct a roadshow in Taiwanon April 13. The two semiconductor plants are coming ar Gujarat’s Dholera and Jagiroad of Assam.
Tata Electronics invited Taiwanese professionals with 5 to 16 years of experience in various semiconductor manufacturing roles. It said candidates must be willing to relocate to India and will undergo 18 months of initial training in Taiwan.
Tata’s fab facility will produce mostly 28 nanometre (nm) chips, apart from 50 nm, 55 nm and 90 nm ones.
Tata likely to hold 65% stake in joint venture
Tata is reportedly planning to hold at least a 65% stake in a joint venture that will operate the Pegatron plant near Chennai. Tata, one of the largest conglomerates in India, will operate the joint venture through its Tata Electronics unit