Tata Buys Justech India to boost iPhone Production

Tata Electronics has acquired the Indian operations of the Chinese industrial firm Justech Precision for nearly $100 million.

This acquisition is intended to enhance Tata's manufacturing capabilities as Apple intensifies its focus on assembling iPhones in India. The deal was finalized in August, with HSBC Bank and HDFC Bank serving as advisors.

Justech Precision, headquartered in Kunshan, Jiangsu province, has been a long-standing supplier to Apple since 2008. The company supplies advanced industrial machinery, including computer numerical control (CNC) systems utilized for precise cutting and fabrication, to major Apple suppliers such as Foxconn.

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The Indian branch of Justech, known as Justech Precision Industry India Pvt Ltd, was established in 2019 in Tamil Nadu. Tata Electronics has been increasing its involvement in Apple's supply chain. Earlier in January, the company acquired a 60 percent stake in Pegatron's Indian unit, which operates an iPhone assembly facility, as reported by news agency Reuters.

Tata commenced iPhone assembly in 2023 and is anticipated to play a significant role as Apple reportedly plans to transfer all US-bound iPhone production to India by 2026. At present, Apple continues to manufacture the majority of its smartphones in China; however, escalating geopolitical tensions, increased tariffs, and supply chain disruptions have hastened its efforts to diversify.

Neil Shah, co-founder of Counterpoint Research, informed CNBC that Apple's primary assembler, Foxconn, currently represents approximately two-thirds of India's iPhone shipments, while Tata Electronics manages the remaining one-third.