Reports earlier this year suggested that Pegatron had Apple’s backing for the transaction as the Taiwanese company scaled down its involvement with the tech giant.

Tata strengthens iPhone production with Pegatron deal, expanding Apple's supply chain beyond China into India.

This deal will enhance Tata's iPhone manufacturing operations, as the company already operates a plant in Karnataka. Tata will hold a 60 percent stake in the joint venture.

In a significant move to strengthen its position as a major Apple supplier, Tata Electronics has agreed to acquire a majority stake in Pegatron's iPhone manufacturing plant in Chennai, Tamil Nadu

"Apple's contract manufacturers currently have a monthly capacity of around 40 million iPhones, out of which 30-35 million units are made every month. With this deal done, the capacity is only going to increase as Apple looks to expand its supply chain outside of China amid geopolitical tensions,

Tata group will buy into the India operations of Apple's manufacturing partner Pegatron almost a year after acquiring the business of another supplier Wistron. The deal will make the company one of the biggest contract suppliers to the American electronics giant,

Last year, Tata Group had acquired Taiwan’s Wistron plant in Karnataka, and the company is also building another plant in Hosur in Tamil Nadu. For Tata, the Chennai Pegatron plant will bolster its iPhone manufacturing plans.