Tata Electronics has acquired a 60% stake in Pegatron Technology India, an Apple contract manufacturer with a production facility near Chennai. This move comes on the heels of Tata’s acquisition of Wistron India’s operations in March 2024, marking a significant step in Tata Electronics’ expansion into electronics manufacturing. With these two acquisitions, the company now operates two major facilities in Tamil Nadu and Karnataka.
Expanding Manufacturing Footprint
Randhir Thakur, CEO & MD of Tata Electronics, stated, “The acquisition of Pegatron Technology India fits into our 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.”
As part of the deal, Tata Electronics and Pegatron Technology India will integrate their teams. This integration aims to ensure seamless collaboration between the two entities. Pegatron Technology India will undergo rebranding to reflect its new ownership. The rebranding will align with its updated strategic direction. Despite the changes, the company will continue to focus on delivering high-quality electronics manufacturing.
Competing in a Growing Market
Industry experts see Tata Electronics’ acquisitions as a move to challenge players like Foxconn and Dixon. These companies dominate India’s growing electronics manufacturing sector. Apple’s iPhone exports from India have significantly fueled this growth. In FY24, iPhone exports reached $10 billion. In the first seven months of the current fiscal year, exports have already touched $7 billion.
This strong performance underscores India’s increasing prominence as a global hub for electronics manufacturing. The Tata Group’s strategic investments in Apple’s supply chain are expected to further boost India’s position in this sector.
Investments in Semiconductors and ATMP Units
Beyond electronics manufacturing, Tata Electronics is making substantial investments in semiconductor production. The company plans to invest ₹91,000 crore to set up a semiconductor fabrication unit in Gujarat’s Dholera. Additionally, it is investing ₹27,000 crore to establish an Assembly Testing Marking and Packaging (ATMP) unit in Jagiroad, Assam.
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A New Era of Technology-Led Manufacturing
With these acquisitions and investments, Tata Electronics is positioning itself as a key player in India’s electronics and semiconductor industries. The company’s focus on innovation, technology, and operational expansion signals its commitment to driving India’s growth as a global manufacturing powerhouse.
