Tata Electronics has taken significant steps to enhance its foothold in the iPhone supply chain by rebranding Pegatron Technology India and revamping its executive team. This strategic move positions Tata Electronics as a formidable contender to Taiwanese electronics leader Foxconn, reinforcing its commitment to becoming a primary supplier of Apple iPhones and their essential components.
A New Identity for Pegatron
The rebranding of Pegatron Technology India to Tata Electronics Products and Solutions Private Ltd signifies the Tata Group’s dominant stake in this joint venture. Tata Electronics, a fully-owned subsidiary of Tata Sons, has appointed key figures to its management board, including Randhir Thakur as Managing Director and CEO, Srinivas Satya as President of Components Business and Supply Chain, and Sriram Kadiyala as Chief Financial Officer.
- New Leadership: Randhir Thakur (MD & CEO)
- Srinivas Satya (President – Components Business)
- Sriram Kadiyala (CFO)
Former Pegatron managing director Chiu Tan Lin has stepped down from his leadership role but will remain involved as a director, according to reports. This transition aligns with Tata Electronics’ ambitious plans to ramp up iPhone assembly and component production, especially as Apple shifts its supply chain away from China amid ongoing trade tensions with the US.
Embracing India’s Role in the Global Market
In a recent earnings call, Apple CEO Tim Cook highlighted the increasing significance of India in its production landscape. He noted, "For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin." Tata Electronics is capitalizing on this momentum, producing iPhone casings at its manufacturing facility located in Hosur, Tamil Nadu. The company has also started assembling older iPhone models at this site.
- Hosur Facility: Producing iPhone casings
- Recent Developments: Assembling older iPhone models
Tata Electronics made its entry into the iPhone assembly market in October 2023 by acquiring Wistron’s facility in Narasapura, Karnataka, for over ₹1,000 crore. Prior to this acquisition, Foxconn, Pegatron, and Wistron were the only contract manufacturers involved in assembling Apple iPhones in India.
Strategic Acquisitions and Future Plans
Earlier this year, in January, Tata Electronics solidified its role in the Apple supply chain by securing a 60% controlling stake in Pegatron Technology India. This acquisition was part of a broader strategy to rebrand the firm and align its operations with Tata’s vision while maintaining high standards in electronics manufacturing services.
Additionally, Tata Electronics plans a Phase 2 expansion, which includes a new manufacturing facility in Hosur worth ₹6,750 crore. This facility will focus on producing PCBs, chargers, display screens, and other smartphone components. The source indicated that this expansion will be integrated under the newly rebranded entity, further consolidating Tata’s electronics manufacturing services.
- Phase 2 Facility: ₹6,750 crore investment
- Focus Areas: PCBs, chargers, and display screens
Tata Electronics is not only involved in electronics manufacturing services (EMS) but also delves into semiconductor assembly, testing, foundry operations, and design services. As the company continues to evolve, it aims to strengthen its position in the tech landscape while meeting the growing demands of the global market.
