Tata to Purchase Wistron's Karnataka facility: TATA to Become the First Indian iPhone Manufacturer

According to persons with knowledge of the situation, Tata Group, India's largest conglomerate, is nearing an agreement to buy an Apple supplier's facility as early as August, marking the first time a local company would enter the production of iPhones.

The persons, who asked not to be identified because the situation is private, claimed that a takeover of the Wistron factory in southern Karnataka state, which may be worth more than $600 million (approximately Rs. 4,900 crores), would end about a year of negotiations. Over 10,000 people labour at the factory assembling the newest iPhone 14 model.

Wistron has agreed to ship iPhones

According to the sources, to receive state-backed financial incentives, Wistron has agreed to ship iPhones from the facility valued at least $1.8 billion (approximately Rs. 14,800 crores) during the fiscal year ending in March 2024. It also intended to treble the plant's staff by the following year. As Wistron ends its iPhone operations in India, Tata plans to uphold its agreements.

Apple's initiative is to expand technology manufacturing in South Asia

Launching an Indian iPhone is anticipated to give Apple's endeavours to broaden technology manufacturing in South Asia and diversify its product base beyond China more momentum. In the three months ending 30 June, Wistron exported about $500 million (approximately Rs. 4,100 crores) worth of iPhones from India. Foxconn Technology Group and Pegatron, two of Apple's major Taiwanese suppliers, have also increased local production.

India has advanced in domestic manufacturing

Since Prime Minister Narendra Modi established government programs with generous financial incentives to increase production and employment, India has advanced in domestic manufacturing. After China's Covid lockdowns and the escalating tensions between Washington and Beijing, Apple has intensified attempts to diversify away from China.

Modi's aspirations to compete with China as the world's factory may receive a big boost from an Indian company that produces iPhones. It might encourage other electronics manufacturers to think about producing in India to lessen their dependence on China.

Conclusion

The 155-year-old Tata Group offers products ranging from tech services to salt. The group has been attempting to break into the relatively uncharted waters of e-commerce and electronics manufacturing for the past few years. At its facility in Tamil Nadu, which is stretched over hundreds of acres of land, it already manufactures the iPhone chassis or the metal framework of the gadget. The Tatas also support chip manufacturing aspirations, according to Chairman N Chandrasekaran.