MC EXCLUSIVE iPhone-maker Pegatron setting up new plant in Chennai for 5G equipment eyes local, export markets

The Chennai facility, Moghe said, will serve both domestic customers and export markets, leveraging India’s emerging role as a manufacturing and design hub.

Taiwanese electronics manufacturing giant Pegatron is setting up a new factory in Chennai dedicated to producing 5G small cells for India’s growing private networks market, while also catering to global demand from regions such as Europe, Southeast Asia, and potentially North America.

In an interview with Moneycontrol. Jayant Moghe, AVP and Country Manager at Pegatron India, said the new plant marks the company’s next phase of investment in India’s telecom manufacturing ecosystem.

“We are establishing our second Pegatron factory in Chennai to manufacture 5G small cells for the private 5G market, which we believe will be a growing segment in the years to come,” he told Moneycontrol.

Pegatron, one of the world’s largest electronics manufacturing services (EMS) companies with global revenues of $35–40 billion, has been building its telecom manufacturing footprint steadily over the past four and a half years.

The Chennai facility, Moghe said, will serve both domestic customers and export markets, leveraging India’s emerging role as a manufacturing and design hub.

“We are starting to onboard customers for Indian demand, and some are already waiting for our devices to be ready,” Moghe said. “The factory will also serve export markets in Europe, East and Southeast Asia, and depending on demand, North America as well.”

Pegatron, one of Apple’s key manufacturing partners, had been assembling iPhones at its Chennai facility. However, that factory has now been taken over by Tata Electronics, which will continue producing iPhones there. The move marks a major shift in Apple’s India strategy — with Tata becoming the first Indian company to manufacture iPhones, taking over operations that Pegatron earlier handled.

Building for Private 5G and Beyond

The upcoming Chennai unit will initially focus on 5G small cells — key enablers of private 5G networks used by enterprises in manufacturing, mining, logistics, and automation. However, Moghe noted that Pegatron’s telecom portfolio goes beyond radios. “We do complete 5G devices such as cameras, CPEs, Wi-Fi and GPON end-user devices, and AI modules,” he said, adding that the company is also developing edge AI hardware and automation systems for use in smart factories.

He described Pegatron’s manufacturing vision as an integration of AI, connectivity, and hardware — all areas the company is simultaneously investing in globally.

Pegatron already runs a fully connected private 5G-enabled factory in Batam, Indonesia, producing AI-powered devices and automation systems, and the company plans to replicate that model in India.

Local Value Addition on the Horizon

Moghe acknowledged that Pegatron currently designs its devices in Taiwan, with new product introduction (NPI) processes handled there before shifting production to India. Over time, however, the company expects to increase local sourcing and value addition as India’s component ecosystem deepens.

“For the future, local sourcing is something we will seriously look at,” Moghe said. “As the component ecosystem for telecom develops, we will take the right decisions around localisation.”

Government Push and Policy Backing

While Pegatron is yet to formally apply under India’s Production-Linked Incentive (PLI) scheme for telecom manufacturing, Moghe confirmed that the company is evaluating such opportunities. “We have a separate team looking at these aspects, and if applicable, we will take the right decision,” he said.

He also credited the Indian government’s Make in India and semiconductor initiatives for creating a strong policy environment for electronics manufacturing. “Manufacturing has been given a big boost by the government,” Moghe said. “Without manufacturing, achieving the Viksit Bharat 2047 vision will not be possible.”

Collaboration with Indian Innovators

Pegatron sees strong innovation potential emerging from India’s startups and university ecosystem, especially in 5G and AI. Moghe said the company is already in talks with some Indian firms to combine local software capabilities with Pegatron’s global hardware expertise.

“We are seeing a lot of ideas and IP coming from young entrepreneurs and students,” he said. “As we move forward, India will develop more of its own IP — something we never had in the past. That gives us confidence in the country’s digital future.”

The company’s focus on small cells aligns with India’s push for enterprise 5G networks, where demand is expected to surge across sectors.

“We are confident about India — that’s why we are here,” Moghe said. “We take small steps and move forward with confidence, together with our partners.”