On Friday, Jan 24, Tata Electronics announced its acquisition of a 60% stake in Pegatron's India unit, which runs an iPhone plant, solidifying the Tata group's position as an Apple supplier in the rapidly growing market. The stake purchase in Pegatron Technology India, where Apple's iPhone plant near the city of Chennai is located, was confirmed by a source familiar with the transaction to Reuters.
Both Tata Electronics and Pegatron have not yet responded to requests for comments from Reuters, and the financial details of the deal remain undisclosed.
This move adds to Tata Electronics' existing manufacturing facilities, with two plants in Tamil Nadu and one in Karnataka that were acquired from Taiwan's Wistron last year.
Apple, amid geopolitical tensions between Beijing and Washington, is seeking to broaden its supply chain beyond China.
Last April, there were reports that Pegatron, with Apple's support, was in advanced discussions to transfer its sole iPhone plant in India to Tata, as part of its effort to reduce reliance on Apple.
Tata, a major conglomerate in India, is expanding its presence in iPhone manufacturing, challenging Foxconn, the sole other iPhone contract manufacturer in operation in India.
In January, India's competition regulator approved Tata Electronics' acquisition plan for a stake in Pegatron Technology India.