Taiwans Pegatron is one of the leading companies with a contract to manufacture iPhones globally. Noel Tata led Tata Group has now acquired a significant stake in the Indian unit of this company. This strategic move sets up a joint venture between Tata and Pegatron to manufacture iPhones in India accelerating the production of iPhones within the country. Tata Electronics Strategic Move In a major milestone Tata Electronics has taken a significant step in the iPhone manufacturing industry by acquiring a substantial stake in Pegatrons Tamil Nadu plant. This deal is expected to boost the production capacity of iPhones in India. However neither Tata Electronics nor Pegatron have officially commented on the deal yet. Tata Group Acquires 60% Stake According to media reports Tata Electronics is expected to own a 60% stake in this deal. Pegatron in collaboration with Tata will continue iPhone production under this joint venture. The deal is estimated to be worth between $150 million to $200 million. This partnership aligns Tata with other Taiwanese firms like Wistron and Pegatron positioning them to manufacture iPhones in India. Meanwhile Taiwan’s Foxconn remains a major contract manufacturer for iPhones. Accelerated iPhone Production in India Currently Apples contract manufacturers have a production capacity of 40 million iPhones annually with a monthly output of approximately 30 to 35 million units. This new deal with Tata is expected to speed up iPhone production particularly aiding Apple in diversifying its supply chain outside of China. Geopolitical tensions have impacted iPhone supply chains making this expansion in India critical for Apple. With Tata Electronics entry India could potentially meet increasing iPhone demand both domestically and in neighboring regions. Apple has noted a surge in iPhone demand over the past few months. Benefits from PLI Scheme The Indian government’s Production Linked Incentive (PLI) scheme for electronics manufacturing is likely to benefit both Tata Group and Pegatron. Following its acquisition of Wistrons iPhone assembly plant Tata has become the first Indian company to have a significant foothold in global iPhone manufacturing.  This strategic collaboration not only boosts Indias capabilities in high-end electronics manufacturing but also aligns with Apples efforts to reduce its dependence on China by diversifying its production hubs. Noel Tata was appointed as the chairman of the Tata Trusts on October 11 2024 after the death of his half-brother Ratan Tata. Natarajan Chandrasekaran is the chairman of Tata Sons the holding company for the Tata Group.