Tata Group, India’s largest conglomerate, is reportedly in advanced talks to acquire a factory currently owned by Apple supplier Wistron Corp. This potential acquisition would mark a significant milestone as it would be the first time an Indian company enters the iPhone assembly business. Sources familiar with the matter revealed that the deal could be finalized as early as August, following nearly a year of negotiations.
The Wistron factory, located in southern Karnataka state, is responsible for assembling the latest iPhone 14 model and employs over 10,000 workers. The estimated value of the deal exceeds $600 million. To secure state-backed financial incentives, Wistron has committed to shipping iPhones worth at least $1.8 billion from the factory by March 2024. Additionally, the company planned to triple the plant’s workforce by the next year. Tata Group intends to honor these commitments as Wistron exits the iPhone business in India.
If the acquisition goes through, an Indian-made iPhone would contribute to Apple’s ongoing efforts to diversify its manufacturing base beyond China. It would also bolster technology manufacturing in India. Notably, Wistron already exported nearly $500 million worth of iPhones from India in the three months ending June 30. Apple’s other key Taiwanese suppliers, Foxconn Technology Group and Pegatron Corp., have also expanded their operations in India.
Under Prime Minister Narendra Modi’s initiatives, India has made significant strides in domestic manufacturing, offering lucrative financial incentives to promote production and employment. As Apple aims to reduce its reliance on China amid Covid-related disruptions and geopolitical tensions, manufacturing iPhones in India could provide a notable advantage. It may even encourage other global electronics brands to consider India as an alternative production hub, reducing their dependence on China.
The Tata Group, with its 155-year history and diverse business portfolio, ranging from salt to tech services, has been venturing into electronics production and e-commerce in recent years. The conglomerate already manufactures iPhone chassis at its sprawling factory in Tamil Nadu and has expressed ambitions in chipmaking.
By acquiring the Wistron factory, Tata Group aims to strengthen its position in the electronics manufacturing sector and contribute to India’s goal of challenging China’s dominance as the world’s factory. The move aligns with the Modi government’s vision of boosting domestic production and employment while attracting global brands to invest in India.
