Pegatron Scaling Back Its Apple Collaboration

Pegatron Corporation (4938.TW), which manufactures and distributes consumer electronics, is allegedly in the process of handing control of its iPhone manufacturing plant in India over to the Tata Group.

Electronic lab

Reuters reported that should this happen, it would be the largest downsizing of the company’s partnership with Apple Inc. (AAPL).

The move reportedly has the support of Apple and might give Tata a 65% controlling stake in the Chennai-based facility. Reuters sources indicated that Pegatron will continue to provide technical support and retain the remainder of its interest.

As one of the largest Indian business consortiums, Tata will run the joint venture through its Tata Electronics segment. The Pegatron facility currently employs approximately 10,000 people and produces five million iPhones annually.


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After relinquishing its control of the China-based iPhone manufacturing facility to Luxshare Precision Industry Co. Ltd (002475.SZ) in 2023 for $290m, this is the last Apple plant in which Pegatron has any involvement.

Apple is looking to expand its production facilities in light of the simmering geopolitical tensions between the US and China. The tech titan already runs an iPhone production plant in Karnataka after taking it over from Wistron Corporation (3231.TW), a Taiwanese company, in 2023.

Apple is also constructing another iPhone assembly facility in Hosur. Sources expect a finalisation of the talks between Tata and Pegatron within the next six months.

Apple’s iPhone partnerships in India currently include Tata, Pegatron and Foxconn. Analysts believe that Tata holds the key to Apple’s manufacturing success in India.

 

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