Tata Set to Acquire Apple Supplier Wistron's Karnataka Factory to Become First Indian iPhone Maker

The addition of an Indian iPhone is likely to add momentum to Apple’s efforts to diversify its product base beyond China.

By Sankalp Phartiyal, Bloomberg | Updated: 11 July 2023 11:59 IST

Tata Set to Acquire Apple Supplier Wistron's Karnataka Factory to Become First Indian iPhone Maker

Photo Credit: Bloomberg

Tata making iPhones could prove to be a significant boost for the Make in India campaign

Highlights

Wistron has committed to ship iPhones worth at least $1.8 billion
Tata is set to honor those commitments as Wistron exits
The facility employs more than 10,000 workers

Tata Group, India's largest conglomerate, is close to an agreement to acquire an Apple supplier's factory as soon as August, marking the first time a local company would move into the assembly of iPhones, according to people familiar with the matter.

A takeover of the Wistron factory in southern Karnataka state, potentially valued at more than $600 million (roughly Rs. 4,900 crore), would cap about a year of negotiations, said the people, asking not to be named as the matter is private. The facility employs more than 10,000 workers, who assemble the latest iPhone 14 model.

Wistron has committed to shipping iPhones worth at least $1.8 billion (roughly Rs. 14,800 crore) from the factory in the fiscal year through March 2024 to win state-backed financial incentives, the people said. It also planned to triple the plant's workforce by next year. Tata is set to honour those commitments as Wistron exits the iPhone business in India.

Vedanta Says Investors Are Lined Up as Foxconn Withdraws From $19 Billion Deal

Spokespersons for Tata, Wistron and Apple declined to comment.

The addition of an Indian iPhone is likely to add momentum to Apple's efforts to diversify its product base beyond China and build up technology manufacturing in the South Asian nation. Wistron exported nearly $500 million (roughly Rs. 4,100 crore) in iPhones from India in the three months ended June 30, and Apple's other key Taiwanese suppliers, Foxconn Technology Group and Pegatron, have also ramped up locally.

India has made progress in domestic manufacturing since Prime Minister Narendra Modi set up government programs with lucrative financial incentives to expand production and employment. Apple has stepped up efforts to diversify away from China in the aftermath of the country's Covid lockdowns and rising tensions between Washington and Beijing.

China Launches Homegrown Open-Source Computer OS to Rival Windows, MacOS

An Indian company making iPhones could prove a significant boost for Modi's efforts to challenge China's status as the factory of the world. It may help persuade other global electronics brands to consider production in India to reduce their reliance on China.

The 155-year-old Tata Group sells everything from salt to tech services. Over the past few years, the group has sought to make inroads into electronics production and e-commerce, both relatively new territories for the Tata family.

It already makes the iPhone chassis, or the metal backbone of the device, at its factory, spread over hundreds of acres of land in Tamil Nadu state. The Tatas also foster chipmaking ambitions, Chairman N Chandrasekaran has previously said.

Microsoft India President Anant Maheshwari Resigns, Irina Ghose Becomes MD

--With assistance from Debby Wu and Mark Gurman.

OnePlus Nord 3 brings some serious upgrades over its predecessor, including some flagship-grade specifications. We discuss this and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.