Tata Group to Acquire Apple Supplier’s Factory in Major Milestone; Tata-Wiston to Close Deal by August

Main Image
  • Like
  • Comment
  • Share

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.

Aryan VyasAryan Vyas
Aryan is the youngest tech enthusiast at Smartprix, with a deep passion for technology, automobiles, cricket, and Bollywood. He is a meticulous researcher and writer who write on a wide range of tech topics, including smartphones, laptops, wearables, and smart home device.


Related Articles

ImageExclusive: Moto Razr 50 Lineup Debuts in July

The Lenovo-owned smartphone brand Moto is gearing up to release the yearly update to its Razr series. Last year, the company released the Razr 40 (review) and the Razr 40 Ultra. In 2024, the brand will update its foldable lineup with the Razr 50 and the Razr 50 Ultra, two foldables that could compete with …

ImageTata Group to join the club of iPhone manufacturers in India? Read on to know more

The Tata Group is reportedly in talks with Taiwan-based Winston Corp to join the bevy of iPhone makers in India. It is a part of Apple’s plans to broaden its Indian manufacturing unit. Wistron, who is a supplier to Apple will establish an electronics manufacturing unit in India in partnership with the Tata Group if …

ImageApple iPhone 15 & iPhone 15 Plus to be ‘Made in India’ by Tata Group: Read on to know more

Apple is all set to launch its annual iPhone Series in September/October 2023. The iPhone 15 Series is said to have 4 models- iPhone 15, iPhone 15 Plus, iPhone 15 Pro & iPhone 15 Pro Max. Not only will Apple sell its iPhones in India, but the brand has been working on expanding its manufacturing …

ImageApple To Join Forces With Titan Company And Murugappa Group For Making iPhone Camera Modules

The Cupertino-based tech giant Apple is about to finalize a deal with Titan Company (Tata Group’s venture) and the Chennai-based Murugappa Group. As part of the deal, the Indian companies will assemble camera modules for iPhones as part of the company’s strategy to move away from its dependence on Chinese suppliers. Locally Sourced Camera Module …

ImageTata Group becomes the first Indian giant to manufacture iPhones taking over Wistron’s factory

Since 2016, Taiwanese manufacturing firms Pegatron, Foxconn, and Wistron have been manufacturing iPhones in India. In a major development, Indian giant Tata Group is taking over Wistron’s manufacturing factory based in Karnataka. It means Tata Group will be responsible for manufacturing and assembling iPhones in India for global and domestic markets within two and a …

Discuss

Be the first to leave a comment.