According reports, India's Tata Electronics has agreed to purchase the majority of Taiwanese contract manufacturer Pegatron's sole iPhone plant in India, creating a new joint venture that will bolster Tata's standing as an Apple supplier.

According to the agreement that was made internally last week, Tata will control 60% of the joint venture and manage day-to-day operations, while Pegatron will control the remaining portion and offer technical support, according to the two people, who asked not to be identified since the specifics are still confidential.

In April, it was reported that Pegatron, with Apple's support, was in advanced negotiations to sell Tata its sole iPhone plant in India. This was the Taiwanese company's most recent retraction of its relationship with Apple.

To compete with Foxconn, the only other iPhone contract manufacturer in the nation, Tata, one of the largest firms in India, has been quickly entering the iPhone industry.

The source claims that the deal's breakdown was reported internally at the iPhone factory on Friday. The two companies plan to apply for clearance from the Competition Commission of India (CCI) in the coming days.

In the southern state of Karnataka, Tata already has an iPhone assembly factory that it acquired from Taiwan's Wistron last year. In addition, it is constructing a new facility in Hosur, Tamil Nadu, which also houses an iPhone component plant that was damaged in a September fire.

According to analysts, India will account for 20–25% of all iPhone shipments this year, up from 12–14% the previous year.

The Tata-Pegatron plant will be the company's third iPhone manufacturing in India, employing about 10,000 people and producing 5 million iPhones a year.