Chennai: Tata Group is reportedly in talks to acquire Pegatron’s sole iPhone manufacturing plant in Chennai. It is Pegatron’s sole iPhone plant in Bharat. Once the deal is finalized, Tata will hold a minimum stake of 65 percent.
Five million iPhones are currently manufactured at the Pegatron plant annually. There are 10,000 workers employed there. Chennai is the only plant remaining for Pegatron after it divested itself of its iPhone plant in China. With the acquisition of the plant, Tata will be able to strengthen its iPhone manufacturing capacity in Bharat.
Reuters has reported that Apple, the tech giant behind the iconic iPhone, has given its approval for the proposed Tata-Pegatron-Apple joint venture.
Negotiations between Tata and Pegatron to take over the Chennai plant are expected to be completed within six months. Tata also has a stake in an iPhone plant in Karnataka. Apple’s iPhone contract manufacturers in Bharat include Tata, Pegatron, and Foxconn. Experts believe that Tata’s contribution to Apple’s iPhone exports in Bharat will increase from 12–14 percent last year to 20–25 percent this year.
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