Tata Electronics acquires majority stake in Pegatron Technology India

Tata Electronics Pvt Ltd, the electronics manufacturing arm of $165 billion Tata Group, has announced the acquisition of a controlling 60% stake in Pegatron Technology India Pvt Ltd, the local unit of Taiwanese contract manufacturer Pegatron.

The acquisition solidifies Tata Electronics’ position as a key supplier to iPhone maker Apple in the Indian electronics manufacturing sector.

This follows Tata Electronics’ acquisition of Wistron’s India operations (based in Narsapura, Karnataka) less than a year ago in March 2024.

As part of this deal, in addition to acquiring a majority stake in Pegatron Technology India, Tata Electronics says it will with Pegatron on integrating their teams to work seamlessly.

“Pegatron Technology India will undergo rebranding to reflect its new ownership structure and business direction while continuing to deliver high-quality electronics manufacturing services,” the company says in a statement.

Commenting on this important milestone, Dr Randhir Thakur, CEO & MD of Tata Electronics, said, "The acquisition of a majority stake in Pegatron Technology India Private Limited 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 our operations in India."

Tata Electronics became the first Indian company to produce iPhones after it acquired a 100% stake in Wistron Infocomm Manufacturing (India).

Tata Electronics is a prominent global player in the electronics manufacturing industry, with fast-emerging capabilities in electronics manufacturing services, Semiconductor Assembly & Test, Semiconductor Foundry, and Design Services.  Established in 2020 as a greenfield venture of the Tata group, the company aims to serve global customers through integrated offerings across a trusted electronics and semiconductor value chain.  With a rapidly growing workforce, the company currently employs over 50,000 people and has significant operations in Gujarat, Assam, Tamil Nadu, and Karnataka.

Tata Electronics has also partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC) to set up a semiconductor fab unit in Gujarat’s Dholera for ₹91,000 crore. The Dholera plant’s capacity is expected to be 50,000 wafer starts per month (WSPM).

The fab is expected to produce high performance chips with 28 nanometre technology including power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, and power electronics among others.

After watching the global chip race from the sidelines for decades, India has finally taken the plunge to build chips from scratch. Supply chain disruptions during the Covid-19 pandemic forced a rethink on the importance of the local semiconductor industry. With incentives worth ₹76,000 crore, the government is looking to subsidise half the cost of the approved chip projects.

Chips, that power everything from smartphones to laptops to cars, are also used by the booming artificial intelligence (AI) industry. A domestic chip industry is expected to reduce reliance on imports besides de-risking supply chains.