In an advancing development move set to revolutionize the Indian tech landscape, Tata Group, the renowned and largest Indian conglomerate, is poised to secure a deal that would establish them as the first-ever Apple iPhone manufacturer in India. With negotiations in progress, industry insiders anticipate that the agreement will be finalized in August.
This seismic development not only marks a significant milestone for Tata Group but also holds immense implications for the Indian smartphone market and the country’s overall tech industry. According to anonymous sources familiar with the matter, the acquisition of the Wistron Corp. factory in southern Karnataka state is nearing completion and could be valued at over $600 million. The negotiations, which have been ongoing for approximately a year, are reaching their final stages. The factory currently employs over 10,000 workers who are involved in the assembly of the latest iPhone 14 model.
Wistron had earlier committed to supplying iPhones worth $1.8 billion from the factory this year. It had also planned to triple the workforce at the plant. These commitments will now be honored by the Tata Group, Bloomberg said.
The inclusion of Wistron in Apple’s supplier network in India is anticipated to contribute to the company’s ongoing endeavors to reduce its reliance on manufacturing in China. In addition to Wistron, Apple’s primary suppliers in India consist of Foxconn Technology Group and Pegatron Corp. This move underscores Apple’s commitment to diversifying its production capabilities across multiple regions.
Since the establishment of government programs by Prime Minister Narendra Modi, India has witnessed notable advancements in domestic manufacturing, driven by attractive financial incentives aimed at expanding production and generating employment opportunities. In response to the COVID-19 lockdowns and escalating tensions between Washington and Beijing, Apple has intensified its endeavors to diversify its manufacturing operations away from China.
The collaboration between Tata Group and Apple is expected to generate employment opportunities, foster skill development, and stimulate the growth of ancillary industries. The potential benefits, including increased affordability for consumers, a boost to the Indian economy, and the elevation of India’s standing in the global tech landscape, are truly remarkable.
