Mumbai: Tata Group is close to an agreement to acquire Apple Inc supplier’s factory, which could happen as soon as August. The agreement will be the first time that a local company indulges in the assembly of iPhones, according to a report by news agency Bloomberg.
A takeover of Wistron’s factory in Karnataka would end a year of negotiations. The takeover is potentially valued at more than $600 million, as per the report. The factory has more than 10,000 workers to assemble the latest iPhone 14 models.
Wistron has committed to shipping $1.8 billion worth of iPhones from the factory in FY24 so that it can win state-backed financial incentives. The company also plans to increase the plant’s workforce three times by next year. Tata will honour the commitments amid Wistron’s exit from India’s iPhone business.
Spokespersons for Tata, Apple and Wistron declined to comment on the news development, the report added.
An Indian iPhone’s addition is likely to add momentum to Apple’s plans to diversify its product base beyond China and build up technology manufacturing. Wistron exported about $500 million worth of iPhones from India in the first quarter. Foxconn Technology Group and Pegatron Corp have also ramped up operations locally.
Progress in domestic manufacturing has been made since Prime Minister Narendra Modi set up government programmes such as lucrative financial incentives to increase production and employment. Apple has started diversifying away from China after the country was locked down in Covid and rising tensions between the US and China.
iPhone manufacturing by an Indian company may help persuade other global electronics brands to consider production in India to reduce their reliance on China.
The Tata Group, which sells everything from salt to tech services, has sought to make inroads into electronics production and e-commerce over the past few years. Both territories are relatively new for the Tata family.
It already makes iPhone chassis (the metal backbone of the device) at its factory in Tamil Nadu. The Tatas also foster semiconductor manufacturing ambitions, said its chairman, N Chandrasekaran. With agency inputs