The Tata Group, a leading conglomerate in India, has acquired Wistron InfoComm Manufacturing India Private Limited – a supplier to Apple – at an approximate value of $125 million. This acquisition positions Tata as the pioneer among Indian companies to produce iPhones, aiming at manufacturing and assembling Apple iPhones in India for both national and global markets. The transaction is anticipated to be concluded within the coming two and a half years.
About the Acquisition
Wistron, which is among Apple’s crucial contract manufacturers and has accepted to sell its total stake in Wistron InfoComm Manufacturing (India) Private Ltd to Tata Electronics, involving the iPhone manufacturing plant in proximity to Bengaluru.
As predicted by Rajeev Chandrasekhar, Deputy Minister for Information Technology, Tata Group is supposed to commence assembling iPhones in India within the next two and a half years. Initially, the company would be producing iPhones for the national market and is also expected to start exporting iPhones to other countries subsequently.
Currently, Wistron’s facility in Hosur, Tamil Nadu is completely engaged in producing and assembling the iPhone 15 Plus, iPhone 12, and the second-generation iPhone SE. With this acquisition, it is anticipated that Tata will maintain these operations and possibly escalate them.
Additionally, the strategy is anticipated to enhance employment opportunities and boost the nation’s economy. The Indian government has been motivating international companies to manufacture their products in India, and this transaction is a stride towards accomplishing that objective.
This acquisition would also assist Apple in diminishing its dependence on China for iPhone production. The trade war between the US and China has led to heightened tariffs on Chinese commodities, making it costlier for Apple to produce iPhones in China. By switching production to India, Apple can circumvent these tariffs and reduce its production costs.
Future Prospects
Industry experts stress that considering the ambitious ventures of the Tata Group into the semiconductor and electric vehicle (EV) sectors, their move to manufacture high-end iPhones in India is a logical and strategic progression. This harmony with the production of sophisticated electronic devices reinforces their wider expertise and cements their position in the tech and electronics industry.
The venturing of the Tata Group into the iPhone assembly business is a significant windfall for India, which has been endeavoring to attract more foreign investment in the electronics manufacturing sector. The move is also likely to create thousands of jobs in India and give a boost to the nation’s economy.
Moreover, it also aligns with Apple’s efforts to disperse its production beyond China, enhancing India’s role as a major center for smartphone manufacturing and exports.
