Tata strengthens iPhone making operations with Pegatron deal
Tata seals 6040 JV with Pegatron for iPhone plant, sources say
Apple sees India as a key market, diversifying beyond China
NEW DELHI, Reuters India39;s Tata Electronics has agreed to buy a majority stake in Taiwanese contract manufacturer Pegatron39;s only iPhone plant in India, forming a new joint venture that strengthens Tata39;s position as an Apple supplier, two sources told Reuters.
Under the deal announced internally last week, Tata will hold 60 and run daily operations under the joint venture, while Pegatron will hold the rest and provide technical support, said the two sources, who declined to be named as the details are not yet public.
The sources did not elaborate on the financials of the deal.
Tata declined to comment, while Apple and Pegatron did not respond to Reuters queries on Sunday.
Reuters was first to report in April that Pegatron had the backing of Apple and was holding advanced talks to sell its only iPhone plant in India to Tata, marking the Taiwanese firm39;s latest scale back of its Apple partnership.
Apple is increasingly looking to diversify its supply chain beyond China amid geopolitical tensions between Beijing and Washington. For India39;s Tata, the Chennai Pegatron plant will bolster its iPhone manufacturing plans.
Tata is one of the largest conglomerates in India and has been fast expanding into iPhone manufacturing, rivaling the only other iPhone contract manufacturer…