Tata Group, the largest conglomerate in India, is on the verge of acquiring a factory owned by an Apple Inc supplier. This would mark the first time that a local company enters the iPhone assembly business. The factory in question is Wistron Corp, located in southern Karnataka state, and the deal is expected to close in August. The facility currently employs over 10,000 workers who assemble the latest iPhone 14 model.
The potential acquisition is the result of about a year of negotiations, and the deal could be valued at over $600 million. Wistron has committed to shipping iPhones worth at least $1.8 billion from the factory by March 2024, in order to secure state-backed financial incentives. The company also plans to triple the plant’s workforce by next year. Tata Group has agreed to honor these commitments as Wistron exits the iPhone business in India.
Tata, Wistron, and Apple have declined to comment on the matter. However, the addition of an Indian iPhone factory could help Apple diversify its manufacturing beyond China and strengthen its presence in the South Asian market. Wistron alone exported nearly $500 million worth of iPhones from India in the last three months.
India has been incentivizing domestic manufacturing, leading to progress in the sector. Apple has been actively seeking to reduce its reliance on China, especially due to the Covid lockdowns and escalating tensions between the US and China. If an Indian company starts producing iPhones, it could have a significant impact on challenging China’s status as the world’s factory and encourage other global electronics brands to consider production in India.
Tata Group, with its 155-year history, has been expanding its operations in electronics production and e-commerce. The conglomerate already manufactures iPhone chassis at a factory in Tamil Nadu. Additionally, the company aims to venture into chipmaking, as stated by Chairman N Chandrasekaran.
In conclusion, Tata Group’s potential acquisition of Wistron’s factory signifies a major step forward for India’s involvement in iPhone assembly. It aligns with Apple’s efforts to diversify its manufacturing base and reduce dependence on China. Moreover, it has the potential to boost India’s manufacturing sector and attract other international electronics brands.
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