India's Tata Electronics has entered into an agreement to acquire a majority stake in Taiwanese contract manufacturer Pegatron's sole iPhone plant in India, establishing a joint venture aimed at bolstering Tata's role as an Apple supplier, Reuters reported, citing sources.

As per the arrangement, which was disclosed internally last week, Tata will hold a 60% stake and oversee daily operations, while Pegatron will retain the remaining share and provide technical support.

The sources, who requested anonymity due to the private nature of the discussions, did not disclose the financial terms of the deal.

In April, Reuters reported that Pegatron, with Apple’s backing, was in advanced discussions to sell its Indian iPhone facility to Tata as part of Pegatron’s efforts to scale back its Apple-related operations.

Apple has been diversifying its supply chain beyond China due to geopolitical tensions between Beijing and Washington.

For Tata, acquiring the Chennai-based Pegatron plant is a significant step in its iPhone manufacturing ambitions.

Tata, one of India’s largest conglomerates, has been rapidly expanding its footprint in iPhone production, emerging as a competitor to Foxconn, the only other iPhone contract manufacturer in India.

The first source noted that the deal's conclusion was announced internally at the iPhone plant on Friday.

The second source revealed that both companies plan to seek approval from the Competition Commission of India (CCI) in the near future.

Tata currently operates an iPhone assembly facility in Karnataka, which it acquired from Taiwan’s Wistron last year.

It is also constructing another plant in Hosur, Tamil Nadu, which is already home to Tata’s iPhone component manufacturing unit, where a fire incident occurred in September.

Reuters said citing analysts project that India will account for 20-25% of global iPhone shipments in 2024, up from 12-14% in the previous year.

The Tata-Pegatron facility, employing nearly 10,000 workers and producing 5 million iPhones annually, will become Tata's third iPhone manufacturing plant in India.