Pegatron is reportedly nearing a deal to sell the Tata Group a controlling stake in its iPhone facility in Tamil Nadu, India.
Pegatron facility (Source: Pegatron)
Following its outright purchase of Wistron's iPhone plant in India's southwestern state of Karnataka, the Tata Group is poised to take control of a similar facility now owned by Pegatron.
According to Reuters, Pegatron and the Indian conglomerate Tata are in advanced talks. If completed as expected, the Tata Group would control at least 65% of the plant near Chennai city in Tamil Nadu, around 180 miles to the east of the ex-Wistron facility.
The plant is Pegatron's only iPhone manufacturing facility in India. Pegatron would retain a part share in the joint venture, and will reportedly provide technical support.
Apple is said to have approved the deal, which will affect around 10,000 employees. The facility is reported to produce around five million iPhones per year.
This expansion of the Tata Group's interest in iPhone production is to continue. The company is currently building a new plant which while in Tamil Nadu, is only around 30-40 miles from the facility it took over from Wistron.
According to Reuters, it's expected that once the Tata Group completes building the new facility, Pegatron will help run it.
The news of the Tata Group working to take over Pegatron's facility also follows Pegatron committing $120 million in Tamil Nadu, in January 2024. At the same time, the Tata Group agreed to invest $1.4 billion in the region.