Tata Group is all but set to sign an agreement to purchase a factory owned by an Apple Inc. supplier, making it the first Indian company to enter the iPhone assembly business. According to insiders, the acquisition of Wistron Corp.’s factory in southern Karnataka state, estimated to be worth over $600 million, follows nearly a year of negotiations.
The facility currently employs more than 10,000 workers who assemble the latest iPhone 14 model.
Due diligence complete, deal to be signed soon
Sources reveal that the Tata Group has been conducting thorough evaluations of the Wistron facility for some time now. While there are still unresolved issues, they are in the process of being addressed and are likely to be rectified by the time the deal is signed.
To secure financial incentives from the state, Wistron has committed to shipping iPhones worth at least $1.8 billion from the factory until March 2024. The company also had plans to triple the workforce at the plant by next year. Tata is expected to honour these commitments as Wistron exits the iPhone business in India.
Major boost for Apple in India
The introduction of an Indian-made iPhone is likely to bolster Apple’s efforts to diversify its manufacturing beyond China and establish a stronger presence in the South Asian nation. In the three months leading up to June 30, Wistron exported nearly $500 million worth of iPhones from India, while other Taiwanese suppliers of Apple, Foxconn Technology Group and Pegatron Corp., have also expanded their operations in the country.
Under the leadership of Prime Minister Narendra Modi, India has made significant strides in domestic manufacturing through government programs that offer attractive financial incentives to promote production and employment.
Tough challenges to China’s dominance as the World’s Factory
As China’s status as the World’s Factory faces challenges, an Indian company producing iPhones could play a pivotal role in Modi’s efforts to reshape the global manufacturing landscape. It may also encourage other international electronics brands to consider manufacturing in India as a means to reduce reliance on China.
The Tata Group, with a history spanning 155 years, engages in diverse businesses, ranging from salt to tech services. In recent years, the conglomerate has ventured into electronics production and e-commerce, both of which are relatively new territories for the Tata family.
They currently manufacture iPhone chassis, the metal framework of the device, at a sprawling factory in Tamil Nadu. Additionally, Chairman N Chandrasekaran has expressed the group’s aspirations in the chipmaking industry.
from Firstpost Tech Latest News https://ift.tt/1j6MsZC
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