Tata Electronics Acquires 60% Stake in Pegatron India

Tata Electronics Private Limited (TEPL), a wholly-owned subsidiary of Tata Sons, has acquired a 60% controlling stake in Pegatron Technology India Private Limited (PTI). This acquisition is aimed at expanding TEPL's local iPhone manufacturing footprint in India.

Here are some key points about the acquisition:

Strategic Vision: The acquisition aligns with Tata Sons' Chairman N Chandrasekaran's vision of bolstering investments in India's electronics manufacturing sector.

Integration: TEPL and PTI will work on integrating their teams to ensure seamless collaboration.

Rebranding: Post acquisition, Pegatron will undergo rebranding to reflect its new ownership structure and business direction while continuing to deliver high-quality electronics manufacturing services.

Previous Acquisitions: This move follows TEPL's acquisition of Wistron's India operations in March 2024.

Future Plans: TEPL aims to expand its manufacturing footprint and move into AI, digital, and technology-led manufacturing.

This acquisition solidifies TEPL's position as a key player in the Indian electronics manufacturing sector.

Tata Electronics Acquires Majority Stake in Pegatron’s Only iPhone Manufacturing Unit in India

Tata Electronics has acquired a 60% majority stake in Pegatron's only iPhone manufacturing unit in India, located in Chennai.

This acquisition is part of Tata's strategy to strengthen its position in the global technology manufacturing landscape and support Apple's efforts to diversify its production base outside of China.

Tata Electronics will hold a 60% stake and manage the daily operations, while Pegatron retains a 40% share and provides technical support.

The Chennai plant employs around 10,000 workers and has an annual production capacity of 5 million iPhones.

This move positions Tata as a key player in the iPhone supply chain and aligns with Apple's strategy to diversify its manufacturing bases.

Tata Electronics is also constructing another iPhone component plant in Hosur, Tamil Nadu, and has plans to launch around 100 small, exclusive Apple stores across India.

This acquisition is a significant step for Tata Electronics as it expands its footprint in the tech manufacturing sector and strengthens its partnership with Apple Inc., which is reportedly increasing its iPhone production in India, i.e. potentially double its production to over $30 billion annually within the next two years, 

To recall, Apple Inc has recently established its first subsidiary in India, that marked Apple's first direct presence in India. This move aimed at expanding its operational footprint beyond assembly and sales.

Tata Electronics has been expanding its footprint in iPhone manufacturing with several plants in India. Last year, Tata Electronics took over an iPhone assembly plant in Karnataka from Taiwan's Wistron. Besides these two plants, Tata Electronics is constructing another iPhone component plant in Hosur, Tamil Nadu. This facility will further enhance Tata's production capabilities and support Apple's supply chain diversification efforts.

These plants collectively strengthen Tata Electronics' position as a key player in the global iPhone supply chain and support Apple's strategy to diversify its manufacturing bases.

Tech Mahindra and Pegatron Inks MoU for Developing AI-Enabled Private 5G Networks for Global Enterprises

Tech Mahindra, a leading provider of digital transformation, consulting, and business re-engineering services and solutions, and Pegatron, a global leader in technology and electronics manufacturing, on Wednesday, announced the signing of a Memorandum of Understanding (MoU) at Mobile World Congress (MWC) 2024. The two organisations will develop private 5G solutions for global enterprises. The partnership between the organizations will explore mutually beneficial opportunities in the fast-growing private 5G space, positioning it as a catalyst for business growth.

The partnership will leverage purpose-built private 5G product portfolio marketed under Pegatron 5G business unit, coupled with Tech Mahindra's proven expertise in large-scale 5G transformations, to provide end-to-end 5G for Enterprise (5G4E) solutions for global enterprises and manufacturing customers. It will enable the two organisations to jointly identify opportunities globally, with Pegatron providing the 5G connectivity layer and Tech Mahindra offering end-to-end 5G services. The combined efforts will further accelerate the implementation of artificial intelligence (AI) applications and edge computing technology through 5G and help various industries accelerate their network adoption.

Harshvendra Soin, President – Asia Pacific and Japan Business, Tech Mahindra, said, “Manufacturers and enterprises are constantly seeking new ways to enhance operational efficiency and build more resilient processes. 5G technology can unlock new levels of innovation and productivity, paving the way for a more connected and efficient future. Our robust market presence, close ties with telcos, communication partners, and extensive expertise in global 5G4E rollout will successfully provide IT and network services to Pegatron. Additionally, Tech Mahinda will be able to reach a wider segment of customers through Pegatron's 5G private networks and small cells portfolio.”

With Tech Mahindra's 5G4E transformation programs, Pegatron will gain insights to refine its portfolio based on specific geographic, industrial, user, technological, and regulatory considerations, especially in the APJI region. The partnership will also focus on enhancing digital resilience for disaster response and improving communication in disaster-prone or remote areas. It further aims to aid first-line disaster relief units with energy-efficient solutions using 5G Radio Access Network and satellite communication technology.

Dr. Shue, Chief Technology Officer, Pegatron, said,“We have always been committed to applying the most advanced technology to enhance customer value. We are honored to collaborate with Tech Mahindra which will unlock opportunities for enterprises across the globe to experience this strong 5G product portfolio to create resilient and efficient network solutions around AI-led use-cases that will help optimize their investments. The partnership puts us in a unique position to drive the next wave of industrial automation and bring significant value to our customers.”

Tech Mahindra will utilize Pegatron’s diversified 5G product portfolio to deliver comprehensive solutions that meet enterprise customer expectations in terms of cost efficiency, resilience, cloud and AI connectivity, high availability, resource optimization, and energy savings. Tech Mahindra is already a long-standing partner for Pegatron Corporation, providing device engineering services to its communications business unit.

Established in January 2008, Pegatron leverages extensive high-end consumer and commercial communications product development expertise with a vertically integrated manufacturing approach to provide end-to-end 5G network solutions. Our extensive manufacturing spans across 16 global operational sites with over 147,000 employees. This requires a prominent level of employee cohesion, rooted in the efficient delivery of professional, innovative, systematic, and comprehensive high-technology services that meet the diverse needs of our global clients, including global telecommunication service providers and system integrators.

Pegatron 5G is a dedicated division formed in 2018 that is based on the passion for innovation that drives our team to use in-depth insights into the needs of various aspects of industrial transformation. We continuously build upon the newest breakthroughs in 5G technologies, which open unlimited possibilities for the telecommunication industry.

Apple To Manufacture iPhones in India

Tech biggie Apple seems to have big plans for India in the year 2017. According to reports, Apple supplier Wistron Corp, a Taiwanese contract manufacturer, is seeking to expand its factory in the city of Bengaluru and has applied for a fast-tracked approval for the same.

Wistron has been recently added as Apple’s third manufacturer for Apple's 2017 incoming iPhone 8. Prior to this, the company had gained experience and credibility as an Apple supplier on secondary iPhone handsets such as the iPhone 5s and, the iPhone SE as well.

It is interesting to note that the news comes just a few weeks after its was reported that Apple is currently in the midst of talks with the Indian government regarding the possibility of assembling its products in India, one of the world’s biggest smartphone markets, where the United States tech firm makes up for less than 2 percent.

While it is still a little too early to say whether or not Apple will consider moving majority of its manufacturing from China to India, but the Wistron news does add another piece of credible evidence suggesting that this could soon be the case. Prior to the Wistron news, there were reports about both Pegatron and Foxconn — both of which are big suppliers of iPhone orders — are considering expanding to the Indian subcontinent.

If Apple ends up setting up its production in India, it would be a big win for the current Indian government which has been campaigning to attract global manufacturers to India under its famous “Make in India” slogan since taking over the power reigns in 2014. Apple's foreign investment in India will help create jobs and boost the country's economy.

While India stands to gain in terms of foreign investment and jobs, a manufacturing unit in India would also be a positive for Apple as it could help in mitigating the accelerating wage inflation in China where the majority of Apple’s devices are currently being made.

According to industry analysts, local manufacturing could be a small but crucial part of wider strategy of Apple to expand in India and even lower the prices of its products in the country after Apple's Chief Executive Tim Cook visited India in May last year and met Prime Minister Narendra Modi.

Apple's interest in India is a known thing in the tech world. The tech giant has recently announced about its plans to invest a whopping $25 million in a new office complex in India. In addition to this, it also has plans of opening a new office in Hyderabad, which is considered as an India's tech hub, that will be especially focusing on improving Apple Maps.