Tata Electronics Pvt Ltd (TEPL) on Friday announced the acquisition of a 60% controlling stake in Taiwanese contract manufacturer Pegatron’s Drive from India, cementing its position as a key player in the Indian electronics manufacturing sector.
Financial details of the transactions were not disclosed.
Pegatron India is a subsidiary of Taiwanese Pegatron Corporation, involved in providing contract-based electronics manufacturing services (EMS) to global giants such as Litter.
The latest deal is expected to strengthen Tata’s position as an apple supplier and reinforce its iPhone manufacturing plans.
Announcing the acquisition of a 60% stake, Tata Electronics said Pegatron Technology India will rebrand to reflect its new ownership structure and business direction, while continuing to provide high-quality electronics manufacturing services.
The latest move by the electronics arm of the salt-software conglomerate follows its acquisition of Wistron’s India operations (based in Narsapura, Karnataka) less than a year ago in March 2024.
In fact, in his New Year message to employees, Tata Sons Chairman N Chandrasekaran stated that as global supply chains continue to shift in India’s favor as the world’s largest businesses strike a new balance between resilience and efficiency, manufacturing has the potential to transform the country’s economy.
Chandrasekaran called it “a new golden age in India”.
On Friday, Tata Electronics CEO and MD Randhir Thakur said acquiring a majority stake in Pegatron Technology India fits in with Tata Electronics’ strategy to increase its manufacturing footprint.
“We look forward to a new era of AI, digital and technology-led manufacturing as we bring in these new facilities and expand our operations in India,” Thakur said.
In addition to TEPL acquiring a majority stake in Pegatron Technology India, the two companies will work to integrate their teams to work seamlessly.
The Tata Group has roadmap an aggressive plan for electronics and semiconductor manufacturing.
Tata Electronics is building India’s first fab 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 applications in automotive, mobile devices, artificial intelligence (AI) and other key segments to serve customers around the world.
The Tata Group will create 5 lakh manufacturing jobs over the next five years in sectors such as semiconductors, electric vehicles, battery and related industries, Chandrasekaran had said in October last year.
Tata Sons’ Top Top Honcho has stated that India cannot achieve the goals of being a developed nation if the country cannot create manufacturing jobs.