Pegatron negotiating with Tata to sell India iPhone factory

Two inside sources say Pegatron is in advanced discussions to sell its lone iPhone production site in India to the Tata Group, marking the Taiwanese company’s latest withdrawal from Apple.

Apple supports the deal, which requires Tata to hold at least 65% of a joint venture that will operate the Pegatron plant near Chennai in Tamil Nadu, with the Taiwanese firm providing technical support and holding the rest. A second source stated Tata Electronics, one of India’s biggest corporations, would run the joint venture.

About 10,000 people work at Pegatron India, which builds 5 million iPhones a year.