Tata Electronics is finalising a deal to acquire a majority stake in Taiwanese contract manufacturer Pegatron’s iPhone assembly plant in Tamil Nadu to boost iPhone production capacity.

Tata Electronics is set to acquire a 60% stake in Pegatron’s iPhone production plant in Tamil Nadu, with Pegatron holding the remaining share. The deal is expected to cost Tata between $150-200 million.

With joint capacities from Pegatron, Wistron, and its expanded Hosur facility, Tata Electronics aims to match or nearly match Taiwan’s Foxconn iPhone production capacity in India.

Apple’s contract manufacturers currently produce around 30-35 million iPhones monthly, with the new deal expected to increase this capacity as Apple shifts production out of China.

Tata Electronics is expanding its presence to meet rising local demand for semiconductors and iPhones, with industry sources noting increased demand for Apple products in recent months.

Tata Group has a multi-partner strategy and has quickly reached an understanding with Pegatron to strengthen its position as a key component maker.

Tata Group became the first Indian company to join the global supply chain after acquiring Wistron’s iPhone assembly plant in India.

Pegatron’s divestment is part of its broader strategy to reduce its presence in China, where most Apple products are still manufactured. JP Morgan noted that Apple’s manufacturing is consolidating among fewer players.

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