Tata's $125 Million Deal with Wistron Marks the Beginning of iPhone Manufacturing in India

29 Oct, 2023

Tata's $125 Million Deal with Wistron Marks the Beginning of iPhone Manufacturing in India

Tata Group has officially announced its entry into iPhone production for both the domestic and global markets, as revealed by Union Minister of State for Electronics & Technology, Rajeev Chandrasekhar, on the social networking platform X. This development marks Tata as the first Indian company to manufacture iPhones, following the acquisition of a Wistron Corporation plant in southern India for $125 million.

During a recent meeting, Wistron, the Taiwanese electronics manufacturer, confirmed that its board had granted approval for the sale of Wistron InfoComm Manufacturing (India) Private Ltd. to Tata. Notably, Apple's iPhones are primarily assembled by Taiwanese manufacturing giants, including Pegatron Corp. and Foxconn Technology Group.

During his statement on X, Minister Chandrasekhar conveyed his excitement, declaring, "In just two and a half years, Tata Companies will initiate the production of iPhones in India, catering to both the domestic and international markets. I extend my congratulations to the Tata team for assuming control of Wistron operations." He also commended Wistron for its contributions and acknowledged Apple's role in establishing a global supply chain in India, with Indian companies taking a leadership role.

Minister Chandrasekhar further emphasized the Ministry of Electronics & IT's full support for the growth of global Indian electronics companies, aligning with the goal of making India a global electronics powerhouse as envisioned by the Prime Minister.

Following the signing of relevant agreements by all parties, the transaction will proceed to secure the necessary approvals. Upon completion of the deal, Wistron will make the required announcements and filings in accordance with regulatory requirements.

According to a Bloomberg report from July, Tata Group had been in discussions to acquire a factory from an Apple Inc. supplier. The introduction of Indian-manufactured iPhones is expected to bolster Apple's efforts to diversify its product production beyond China and expand its technological manufacturing footprint in India.

Earlier this year, Union Minister Piyush Goyal disclosed Apple Inc.'s desire to increase India's share in its production from the current 5%-7% to 25%.

Apple, headquartered in Cupertino, California, initiated the iPhone assembly in India in 2017, aligning with the Indian government's focus on promoting domestic manufacturing through partnerships with Wistron and later Foxconn.

Additionally, the article highlights the success of India's Production-Linked Incentive (PLI) Scheme, which has exceeded expectations by attracting investments of Rs 6,887 crore as of June 2023, surpassing the ministry's target of Rs 5,488 crore by the end of FY24. The PLI scheme, launched in 2021, covers 14 sectors and provides financial incentives to companies manufacturing products in India.

Tata Group, known for its diverse businesses, including salt sales and tech services, has recently embarked on a journey to enter the fields of electronics manufacturing and e-commerce. The group is already producing iPhone chassis at its factory in Tamil Nadu and has expressed aspirations to venture into chip manufacturing under the leadership of Chairman N Chandrasekaran.