Tata Electronics has acquired the Indian operations of Justech Precision, a Chinese supplier to Apple, for approximately $100 million, according to reports.
This strategic acquisition aims to bolster Tata’s role in Apple’s iPhone supply chain within India, aligning with the broader national strategy to deepen electronics manufacturing capacity domestically.
Why This Acquisition Matters
Strengthening Apple Supply Chain in India
Justech Precision, based in Kunshan, China, has been a supplier of precision machinery and components (e.g. CNC systems) for Apple’s ecosystem. Acquiring their India unit gives Tata direct access to those precision manufacturing capabilities on Indian soil.
Supporting India’s Electronics Manufacturing Push
India has been aggressively pushing to become a global manufacturing hub for electronics, and particularly for Apple’s iPhone assembly. This move adds to Tata’s existing investments in assembly and component manufacturing.
Expansion in Manufacturing Footprint
The acquisition reportedly was completed in August 2025, and was advised by HSBC and HDFC Bank. It complements Tata’s earlier moves — for instance, acquiring a 60 % stake in the Pegatron India unit (an iPhone assembler) earlier in 2025.
Key Details & Figures
- Deal Value: ~ USD 100 million (India acquisition)
- Target Entity: Justech Precision’s Indian unit, incorporated in 2019 and headquartered in Tamil Nadu.
- Advisors: HSBC Bank and HDFC Bank reportedly advised the acquisition.
- Complementary Assets: Tata had already acquired a majority stake in Pegatron India, enhancing its iPhone assembly capacity.
- Revenue Implication: In FY25, iPhone exports accounted for ~37% of Tata Electronics’ revenue
Implications & Challenges
Upside Potential
- Deeper Integration: With component and precision manufacturing capabilities in India, Tata can offer more vertically integrated solutions to Apple, reducing dependence on external suppliers abroad.
- Cost & Supply Chain Advantage: Localizing precision component manufacturing may lower logistic, import duty, and currency risk costs.
- Enhanced Negotiating Power: Owning a strategic part of the supply chain can strengthen Tata’s position in supply contracts and leverage with Apple.
- Job Creation & Skills Development: The acquisition could bring advanced manufacturing jobs, skills, and technology transfer into India’s industrial ecosystem.
Risks & Challenges
- Execution & Integration Risk: Integrating a unit from a foreign origin (China) with different systems, quality standards, and processes can be complex.
- Regulatory & Geopolitical Exposure: Given China’s sensitive role in global tech supply chains, any tension or policy shifts may pose risk.
- Dependence on Apple’s Strategy: Tata’s gains will partially depend on Apple’s future decisions: how much iPhone production the company wants in India vs other countries.
- Production ramp & yield challenges: Ensuring the acquired unit scales efficiently, meets Apple’s quality and volume demands, and achieves yields at competitive cost will be critical.