Tata Group Set to Become India’s First iPhone Maker, Deal Expected in August
- ByStartupStory | July 11, 2023
India’s Tata Group, the country’s largest conglomerate, is nearing an agreement to acquire a factory from an Apple Inc. supplier, making it the first local company to venture into iPhone assembly, according to sources familiar with the matter. The deal, expected to close in August, involves the takeover of Wistron Corp.’s factory in southern Karnataka state, which employs over 10,000 workers responsible for assembling the latest iPhone 14 model. The acquisition, potentially valued at over $600 million, comes after approximately a year of negotiations.
CNBC-TV18 has independently verified the development, confirming that Tata Group has been conducting due diligence on the Wistron facility. Although some pending issues remain, they are currently being resolved. Wistron had committed to shipping iPhones worth at least $1.8 billion from the factory until March 2024, securing state-backed financial incentives. Tata Group intends to honor those commitments as Wistron exits the iPhone business in India.
While spokespeople for Tata, Wistron, and Apple declined to comment, this move by Tata Group to manufacture iPhones in India signifies Apple’s efforts to diversify its production away from China and expand its technology manufacturing in the South Asian nation. The Indian government’s programs promoting domestic manufacturing, along with financial incentives, have contributed to the progress of India’s manufacturing sector. Apple’s other Taiwanese suppliers, Foxconn Technology Group and Pegatron Corp., have also increased local production.
The establishment of an Indian iPhone manufacturing facility could provide a significant boost to Prime Minister Narendra Modi’s initiatives to challenge China’s status as the world’s factory. It may also encourage other global electronics brands to consider India as a production hub, reducing their reliance on China. Tata Group, with its extensive business portfolio, has been actively exploring opportunities in electronics production and e-commerce, aligning with Chairman N Chandrasekaran’s vision of venturing into chipmaking.
Follow Startup Story
Related Posts
