TATA Group is positioning itself as a significant player in Apple's supply chain, akin to Foxconn, by acquiring a majority stake in Pegatron's iPhone manufacturing facility in Tamil Nadu. This strategic move, announced on November 20, 2024, involves TATA obtaining a 60% stake in Pegatron's plant, which is responsible for producing approximately 5 million iPhones annually and employs around 10,000 workers.

TATA's acquisition of Pegatron's facility follows its earlier takeover of Wistron's iPhone assembly unit in October 2023, where it secured full ownership for about $125 million. This expansion solidifies TATA's role as a major supplier within Apple's ecosystem in India.

With the addition of Pegatron's facility, TATA now controls three manufacturing sites dedicated to iPhone production. This includes plans for a new plant in Hosur, Tamil Nadu, aimed at further enhancing its production capabilities.

The move is part of Apple's broader strategy to diversify its supply chain away from China due to geopolitical tensions and rising costs. India is emerging as a viable alternative, supported by favorable government policies like the Production-Linked Incentive (PLI) scheme, which has attracted significant investments in the electronics sector.

Analysts predict that India's contribution to global iPhone production could reach nearly 24% this year, doubling from the previous year's figures. This shift is facilitated by TATA's aggressive expansion and investment in advanced manufacturing technologies.

TATA's growing involvement in Apple's supply chain not only enhances its manufacturing footprint but also positions it to meet Apple's ambitious goal of producing over 50 million iPhones annually in India within the next few years. As TATA continues to develop its capabilities, it is set to challenge established players like Foxconn and become a cornerstone of Apple's global production strategy.