Tata Group, India’s largest conglomerate, is reportedly nearing an agreement to acquire a factory owned by an Apple Inc. supplier. If the deal goes through, it would mark the first time an Indian company ventures into the assembly of iPhones. The factory in question belongs to Wistron Corp. and is located in Karnataka. The acquisition, valued at over $600 million, is expected to be finalized in August, following almost a year of negotiations.
The Wistron factory currently employs over 10,000 workers who assemble the latest iPhone 14 model. As part of the agreement, Wistron has committed to shipping iPhones worth at least $1.8 billion from the factory until March 2024 to qualify for state-backed financial incentives. The company also planned to triple the workforce at the plant by next year. Tata Group is set to honor these commitments as Wistron exits the iPhone business in India.
Neither Tata, Wistron, nor Apple provided comments on the matter. If Tata successfully begins producing iPhones in India, it would contribute to Apple’s efforts to diversify its manufacturing beyond China and strengthen its presence in the South Asian market. Wistron has already exported nearly $500 million worth of iPhones from India in the last quarter, and other Taiwanese suppliers like Foxconn and Pegatron have also expanded their operations in the country.
India has made significant progress in domestic manufacturing, aided by government programs that offer financial incentives to boost production and employment. Apple’s attempts to reduce reliance on China, coupled with the impact of Covid lockdowns and geopolitical tensions, have fueled its interest in diversifying its supply chain.
For India, an Indian company manufacturing iPhones would be a notable achievement and could help the country challenge China’s position as the world’s manufacturing hub. It may also encourage other global electronics brands to consider production in India as they seek to reduce their dependence on China.
