Apple Supplier Pegatron Said to Be in Talks With Tata to Sell Its Only India iPhone Plant

[Pelican Press 0]

Apple Supplier Pegatron Said to Be in Talks With ***** to Sell Its Only India iPhone Plant

Pegatron is in advanced talks to hand over control of its only iPhone manufacturing facility in India to the ***** Group, said two sources with direct knowledge, marking the Taiwanese firm’s latest scale back of its Apple partnership.

Under the deal, which has received the backing of Apple, ***** plans to hold at least a 65 percent stake in a ****** venture that will operate the Pegatron plant near Chennai city in the southern Indian state of Tamil Nadu, with the Taiwanese firm providing technical support and holding the rest, one of the sources said.

*****, one the largest conglomerates in India, will operate the ****** venture through its ***** Electronics unit, the second source said.

The Pegatron India factory has around 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 (roughly Rs. 2,415 crore) deal.

***** and Pegatron did not respond to emailed requests for comments. Apple declined to comment. The sources did not share financial details of the ongoing negotiations.

Apple is increasingly looking to diversify its supply chain beyond China amid geopolitical tensions between Beijing and Washington. For India’s *****, the Chennai Pegatron plant will bolster its iPhone manufacturing plans.

***** already operates an iPhone assembly plant in the neighbouring southern state of Karnataka, which it took over from Taiwan’s Wistron last year, and is also building another in Hosur in Tamil Nadu, where Pegatron is likely to emerge as its ****** venture partner.

Pegatron has for months also been building another iPhone factory at its Chennai campus, and the ***** deal talks include taking over that facility as well, the first source said.

The talks between ***** and Pegatron for the factory are expected to close in six months and will see all of the Pegatron India employees move to the ****** venture entity, the first source added.

Apple’s iPhone contract manufacturers in India currently include *****, Pegatron and Foxconn. ***** is key to Apple’s growing ambitions in India, which analysts estimate will contribute 20-25 percent of total iPhone shipments this year, from 12-14 percent last year.

The reasons for Pegatron’s gradual withdrawal from its Apple business, including in India, were not known. Last year, Pegatron said the China plant deal was done to raise capital to “optimise its business”.

© Thomson Reuters 2024

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Apple launched the iPad Pro (2022) and the iPad (2022) alongside the new Apple TV this week. We discuss the company’s latest products, along with our review of the iPhone 14 Pro on Orbital, the Gadgets 360 podcast. Orbital is available on

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