Tata Group set to acquire Wistron factory, will become first Indian company to make iPhones: Report
- The Wistron factory is potentially valued at more than $600 million.
- Both Tata and Wistron have reportedly been negotiating the takeover for about a year and it looks like things are finally inching to a climax.
- Wistron’s Karnataka facility employs more than 10,000 workers, who assemble iPhone 14.
- According to the report, Wistron has committed to shipping iPhones worth at least 1.8 billion from the factory in the fiscal year through March 2024 to win state-backed financial incentives.
- Wistron aimed at tripling the plant’s workforce by next year.
- The Tata Group is set to honour these commitments as Wistron exits the iPhone business in India.
Interestingly, neither Tata Group, Wistron, nor Apple have not confirmed any of the above recent developments. If the deal indeed goes through, the Tata Group would be the first company from India to manufacture iPhones for Apple.
On the other hand, Apple is also keen on diversifying its supply chain and reducing its reliance on China mostly due to the major supply chain issues during the pandemic and geopolitical differences. India is slowly becoming Apple’s one of the biggest markets and the company has been aiming to expand its footprint to attract consumers.
The government’s production-linked incentive (PIL) scheme boots local manufacturing and exports. Wistron exported nearly $500 million in iPhones from India in the three months ended June 30.
