Tata Group, India’s largest conglomerate, is on the verge of finalizing an agreement to acquire a prominent Apple Inc. supplier’s factory in a groundbreaking move that would establish a local company’s foray into iPhone assembly. Sources familiar with the matter told Bloomberg that the takeover of Wistron Corp.’s factory in southern Karnataka state is expected to be completed as early as August, after nearly a year of negotiations.
The potential deal, valued at over $600 million, would mark a significant milestone in the Indian manufacturing landscape. The Wistron facility currently employs more than 10,000 workers, who are responsible for assembling the latest model of iPhones, including the highly anticipated iPhone 14.
As per the Bloomberg report, to secure state-backed financial incentives, Wistron has committed to shipping iPhones worth at least $1.8 billion from the factory during the fiscal year ending in March 2024, and the company has plans to triple the plant’s workforce by next year. Tata Group, renowned for its diverse business portfolio, is expected to honor these commitments as Wistron gradually exits the iPhone business in India.
While spokespeople for Tata, Wistron, and Apple declined to comment on the matter, industry experts anticipate that an Indian company’s involvement in iPhone production could have a significant impact on Apple’s ongoing efforts to diversify its manufacturing base beyond China. In recent months, Apple’s key Taiwanese suppliers, Foxconn Technology Group and Pegatron Corp., have also expanded their operations in India, highlighting the country’s growing prominence in the global technology manufacturing landscape.
Under the leadership of Prime Minister Narendra Modi, India has made substantial strides in bolstering domestic manufacturing. Government initiatives offering lucrative financial incentives to boost production and employment have attracted multinational corporations, including Apple, to explore manufacturing opportunities in the country. This strategic shift away from China has gained further momentum for Apple due to the disruptions caused by Covid-19 lockdowns and escalating tensions between Washington and Beijing.
The presence of an Indian company engaged in iPhone manufacturing has the potential to significantly support Prime Minister Modi’s vision of challenging China’s status as the world’s leading factory. Moreover, it may encourage other global electronics brands to consider production in India as a means to reduce their dependence on China.
Tata Group, with its 155-year-old legacy and diverse business interests ranging from salt to tech services, has been actively exploring new avenues in electronics production and e-commerce. The conglomerate already manufactures iPhone chassis at its sprawling facility in Tamil Nadu, spanning hundreds of acres of land. In addition, Tata Group’s Chairman, N Chandrasekaran, has expressed the conglomerate’s ambitions in the chipmaking sector.
As the Indian manufacturing landscape continues to evolve, the potential acquisition of Wistron’s factory by Tata Group represents a significant step toward establishing India as a key player in global electronics manufacturing and solidifying the country’s position as an attractive investment destination for multinational corporations.
