Following reports back in last year, Tata Electronics has now confirmed it has taken a controlling 60% stake in Pegatron Technology India. It follows Tata’s acquisition of Wistron’s India business as early as March 2024, a clear indication that the conglomerate is accelerating its roadmap for electronic manufacturing.
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Tata Electronics Acquires 60% Stake in Pegatron India, Strengthens iPhone Manufacturing Presence
Pegatron India is a subsidiary of Taiwan-based Pegatron Corporation, a well-known manufacturer in the Electronics Manufacturing Services (EMS) industry. Its customers include Apple, and it exports shipments to major markets in North America, Asia, and Europe. Pegatron India will be invaluable to Tata Electronics as far as putting Tata Electronics on the map in the EMS industry goes given Pegatron’s extensive and established operations.
Even though the merger has been approved by the Competition Commission of India (CCI), the rebranding will bring Pegatron India into the redesigned ambit of Tata’s corporate umbrella. Accordingly, the business, which will remain obligated to provide high-quality services to its existing customers undisturbed, will not be materially impacted by this transition. This acquisition strengthens Tata’s position greatly within the iPhone manufacturing ecosystem. Tata has also an iPhone assembly plant in Karnataka, which it purchased from Wistron last year, and is establishing another big plant in Hosur, Tamil Nadu. Tata hopes to boost its capabilities and capacity in Apple’s worldwide supply chain by using Pegatron India’s expertise and resources.
The decision also highlights India’s expanding role as a center for manufacturing electronics, especially for Apple, which is working to expand its supply chain beyond China. This acquisition gives Tata a firmer footing in this industrial sector while also demonstrating how critical the Indian nation will become for global electronics.’
As a part of the deal, Tata Electronics and Pegatron will combine their teams. The process will take several months, according to people in the know, and is part of Tata Electronics’ plans to make inroads into the electronics manufacturing sector globally.
FAQs
What does Tata’s acquisition of Pegatron India mean?
Tata now owns 60% of Pegatron India, expanding its role in iPhone manufacturing.
Will Pegatron India continue to serve its clients?
Yes, it will still provide electronics manufacturing services to existing clients.
