Tata Electronics is set to acquire a majority stake in Pegatron’s iPhone manufacturing plant in Tamil Nadu, marking a big expansion of Tata’s role as an Apple supplier.

Under the agreement, Tata will hold a 60% stake in the plant and oversee daily operations, while Pegatron will retain the remaining 40% and provide technical support.

The move aligns with Apple’s strategy to diversify its supply chain beyond China, amid growing geopolitical tensions between the U.S. and China. For Tata, this acquisition strengthens its position in the iPhone manufacturing ecosystem.

Tata has been aggressively expanding its footprint in this space, competing with Foxconn, India’s other major iPhone manufacturer. The Tamil Nadu plant, with its workforce of around 10,000 employees, produces approximately 5 million iPhones annually.

This will be Tata’s third iPhone manufacturing facility in India. The conglomerate took over Wistron’s iPhone assembly plant in Karnataka last year and is currently developing another facility in Hosur, Tamil Nadu.