Tata Electronics Acquires 60% Stake in Pegatron Technology India

In a significant move to bolster its position in the electronics manufacturing sector, Tata Electronics announced on Friday that it has acquired a 60% stake in Pegatron Technology India. Pegatron manufactures Apple products at its plant near Chennai. This acquisition follows Tata Electronics’ earlier takeover of Wistron India, another Apple contract manufacturer, in March 2024.

These strategic acquisitions mark a major step in Tata Electronics’ efforts to expand its electronics manufacturing footprint, with the company now operating two key facilities in Tamil Nadu and Karnataka.

Randhir Thakur, CEO & MD of Tata Electronics, said, “The acquisition of a majority stake in Pegatron Technology India fits into Tata Electronics’ strategy of growing our manufacturing footprint. We look forward to a new era of AI, digital, and technology-led manufacturing as we bring up these new facilities and expand operations in India.”

As part of the deal, Tata Electronics and Pegatron Technology India will integrate their teams to work seamlessly, ensuring the efficient transfer of operations. Pegatron Technology India will also undergo rebranding to reflect its new ownership and strategic direction while continuing to deliver high-quality manufacturing services.

Experts view Tata Electronics’ acquisition as a strategic move to compete with global giants like Foxconn and Dixon Technologies in the Indian market. This acquisition positions Tata Electronics as a key player in the country’s burgeoning electronics manufacturing industry.

India’s role in global electronics manufacturing continues to grow, as evidenced by Apple’s iPhone exports. In FY24, iPhone exports from India crossed the $10-billion mark. In the current fiscal, Apple has already achieved 70% of last year’s export value within just seven months, amounting to approximately $7 billion (Rs 60,000 crore). This translates to an average of $1 billion in iPhone exports per month, a milestone achieved for the first time.

In addition to its recent acquisitions, Tata Electronics is making bold investments to strengthen its manufacturing capabilities further. The company is planning to invest Rs 91,000 crore to establish a state-of-the-art semiconductor fabrication unit in Dholera, Gujarat. This initiative aligns with India’s ambitions to become a global semiconductor hub.

Tata Electronics is also investing Rs 27,000 crore in Jagiroad, Assam, to set up an assembly, testing, marking, and packaging (ATMP) unit, which is critical to semiconductor manufacturing.

These moves underline Tata Electronics’ commitment to transforming India into a global manufacturing powerhouse. With its acquisitions of Wistron India and Pegatron Technology India, alongside its massive investments in semiconductor and ATMP facilities, Tata Electronics is poised to play a significant role in driving India’s electronics manufacturing ecosystem forward.