Tata Electronics (TEPL), a subsidiary of Tata Sons, has received approval from the Competition Commission of India (CCI) to acquire a majority stake in Pegatron India, a subsidiary of the Taiwanese electronics manufacturer Pegatron Corporation. Pegatron India is known for providing electronics manufacturing services (EMS) for smartphone brands like Apple, exporting its products to regions including North America, Asia, and Europe. The acquisition will occur in two stages, as confirmed by the CCI.
TEPL specializes in manufacturing high-precision components for large customers, and through its subsidiary, Tata Electronics Systems Solutions, it also offers EMS for smartphones. The planned acquisition of Pegatron India follows reports from November 2024, suggesting that Tata Electronics intends to acquire a 60% stake in the company.
Pegatron India operates a single plant in Chennai, where it employs nearly 10,000 people and produces about five million iPhones annually. This deal builds on Tata Electronics’ October 2023 acquisition of Taiwanese contract manufacturer Wistron InfoComm for $131 million, solidifying its position as the first Indian company to manufacture iPhones for both local and global markets.
Tata Electronics is making significant investments in India’s semiconductor industry, with Rs 91,000 crore allocated for the fab facility in Dholera and Rs 27,000 crore for the assembly and testing unit in Jagiroad. Tata Electronics is a prominent player in the Indian electronics manufacturing sector, focusing on advancing the country’s capabilities in semiconductor production and assembly.
As a subsidiary of the Tata Group, it aims to establish India as a global hub for semiconductor manufacturing by building the country’s first semiconductor fabrication plant in Dholera, Gujarat, backed by a significant investment of ₹91,000 crores.
The company is also set to launch its indigenous semiconductor assembly and testing facility in Jagiroad, Assam, with an investment of ₹27,000 crores. With a commitment to innovation and technology, Tata Electronics emphasizes AI-led manufacturing excellence, positioning itself as a key contributor to India’s strategic initiative to enhance its semiconductor ecosystem and reduce dependency on imports. Through its endeavors, Tata Electronics seeks to drive economic growth, create jobs, and strengthen the nation’s technological infrastructure.
