Tata expands iPhone manufacturing business with new Pegatron deal

India's Tata Electronics has agreed to buy a majority stake in Taiwanese contract manufacturer Pegatron's only iPhone plant in India, forming a new joint venture that strengns Tata's position as an Apple supplier, two sources told Reuters.

Under deal announced internally last week, Tata will hold 60 per cent and run daily operations under joint venture, while Pegatron will hold rest and provide technical support, said two sources, who declined to be named as details are not yet public.

sources did not elaborate on financials of deal.

Tata declined to comment, while Apple and Pegatron did not respond to Reuters queries on Sunday.

Reuters was first to report in April that Pegatron h backing of Apple and was holding vanced talks to sell its only iPhone plant in India to Tata, marking Taiwanese firm's latest scale back of its Apple partnership.

Apple is increasingly looking to diversify its supply chain beyond China amid geopolitical tensions between Beijing and Washington. For India's Tata, Chennai Pegatron plant will bolster its iPhone manufacturing plans.

Tata is one of largest conglomerates in India and has been fast expanding into iPhone manufacturing, rivaling only or iPhone contract manufacturer operating in India, Foxconn.

announcement for deal's closure was me internally at iPhone plant on Friday, said first source.

second source said two companies plan to file for an approval of Competition Commission of India (CCI) in coming days.

Tata alrey operates an iPhone assembly plant in sourn state of Karnataka, which it took over from Taiwan's Wistron last year. It is also building anor in Hosur in Tamil Nu, where it also has an iPhone component plant which was involved in a fire incident in September.

Analysts estimate India will contribute 20-25 per cent of total iPhone shipments this year, from 12-14 per cent last year.

Tata-Pegatron plant, which has around 10,000 employees and makes 5 million iPhones annually, will be Tata's third iPhone factory in India.