Tata Electronics has acquired the Indian unit of Chinese industrial company Justech Precision for nearly $100 million, according to insiders. This move supports Tata’s efforts to expand its manufacturing capabilities to meet Apple’s growing focus on iPhone production in India.

Transaction Details and Industry Background

The acquisition was finalized in August, with HSBC Bank and HDFC Bank advising on the deal. Justech Precision, headquartered in Kunshan, Jiangsu, China, has been an Apple supplier since 2008. The company produces industrial equipment such as CNC machines used for precision cutting and fabrication, supplying major Apple assembler Foxconn.

Tata Electronics’ Growing Role in Indian iPhone Production

Justech Precision Industry India, established in late 2019 and based in Tamil Nadu, did not respond to requests for comment, and Tata Electronics declined to comment as well. Earlier in January, Tata Electronics reportedly acquired a 60% stake in Pegatron’s iPhone factory in India, a contract manufacturer from Taiwan, signaling a clear strategy to scale operations.

Apple’s Strategic Shift to India Amid Geopolitical and Tariff Pressures

Apple continues to produce most of its smartphones in China, but is accelerating capacity building in India through partners like Tata Electronics and Foxconn. This is in response to higher tariffs and geopolitical tensions. Apple aims to supply the entire US iPhone market from India by the end of 2026.

Market Share and Manufacturing Footprint in India

Foxconn accounts for two-thirds of iPhone shipments in India, with Tata Electronics contributing the remaining one-third, according to Neil Shah, co-founder and vice president of Counterpoint Research. Shah noted this balance could soon shift as Tata scales production. Currently, Tata operates two factories in Tamil Nadu and one in neighboring Karnataka, previously owned by Wistron.

PHOTO: UNSPLASH

This article was created with AI assistance.