Tata Electronics Pvt Ltd (TEPL) announced on Friday that it has acquired a controlling 60 percent stake in the Indian unit of Taiwanese contract manufacturer Pegatron. This acquisition solidifies Tata’s position as a key player in the Indian electronics manufacturing sector. The financial details of the transaction have not been disclosed.
Pegatron India, a subsidiary of Taiwanese Pegatron Corporation, provides contract-based electronics manufacturing services (EMS) to global companies such as Apple. This latest deal is expected to enhance Tata’s role as a supplier for Apple and support its iPhone manufacturing plans.
In announcing the acquisition, Tata Electronics stated that Pegatron Technology India will be rebranded to reflect its new ownership and business direction while continuing to deliver high-quality electronics manufacturing services.
This acquisition follows Tata Electronics’ purchase of Wistron’s India operations, which is located in Narsapura, Karnataka, less than a year ago in March 2024.
In his New Year message to employees, Tata Sons Chairman N. Chandrasekaran emphasized that as global supply chains increasingly favor India, the world's largest businesses are finding a new balance between resilience and efficiency. He believes that manufacturing has the potential to transform the Indian economy, referring to it as "a new manufacturing golden age for India."
On Friday, Tata Electronics CEO and Managing Director Randhir Thakur mentioned that the acquisition of a majority stake in Pegatron Technology India aligns with Tata Electronics’ strategy to expand its 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,” Thakur stated.
Following TEPL's acquisition, both companies will work on integrating their teams to ensure seamless collaboration.
The Tata Group is aggressively pursuing a blueprint for electronics and semiconductor manufacturing. Tata Electronics is constructing India’s first semiconductor fabrication facility in Dholera, Gujarat, with a total investment of Rs 91,000 crore. Additionally, another Rs 27,000 crore will be invested in a greenfield facility in Jagiroad, Assam, for the assembly and testing of semiconductor chips.
Together, these facilities will produce semiconductor chips for various applications, including automotive, mobile devices, and artificial intelligence, to serve customers globally.
Chandrasekaran also stated in October last year that Tata Group plans to create 500,000 manufacturing jobs in the next five years across sectors such as semiconductors, electric vehicles, and battery-related industries. He asserted that India cannot achieve the status of a developed nation without creating more manufacturing jobs.
Inputs from PTI