Pegatron (Source: Pegatron)
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Pegatron is reportedly close to a deal to sell a majority stake in the plant to Tata Group for iPhone production in Tamil Nadu, India.
After fully purchasing Wistron's iPhone plant in the southwestern Indian state of Karnataka, Tata Group is poised to take control of a similar plant now owned by Pegatron.
According to Reuters, Pegatron and the Indian conglomerate Tata are in advanced negotiations. If the project is completed as expected, the Tata Group will control at least 65% of the plant near the city of Chennai in Tamil Nadu state, about 180 miles east of the former Wistron plant.
This plant is Pegatron's only iPhone manufacturing facility in India. Pegatron will retain a stake in the joint venture and will reportedly provide technical support.
Apple has reportedly approved the deal, which will affect about 10,000 employees. The facility will reportedly produce about five million iPhones per year.
Tata Group's interest in iPhone production will continue to expand. The company is currently building a new plant in Tamil Nadu, just 30-40 miles from the facility it took over from Wistron.
Once the Tata Group completes construction of the new facility, Pegatron is expected to help operate it, according to Reuters.
The news that the Tata Group is working to acquire Pegatron's business also follows Pegatron's commitment of $120 million to Tamil Nadu in January 2024. At the same time, the Tata Group agreed to invest $1.4 billion in the region.
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