In a significant move that underscores India’s growing importance in the global smartphone manufacturing landscape, Tata Group is all set to initiate the production of iPhones on Indian soil. This development comes on the heels of Tata’s acquisition of Wistron’s operations, a strategic move aimed at catering to domestic and international markets.
The Union Minister of State announced,” for Electronics & Technology, Rajeev Chandrasekhar, who took to X to share this groundbreaking news.
Wistron Corp., the former operator, held a pivotal Board of Directors Meeting on the same day, during which they approved within just two and a half years, @TataCompanies will,” InfoComm (Singapore) Pte. Ltd. and Wistron Hong Kong Limited, to enter into a Share Purchase Agreement with Tata Electronics Private Limited (TEPL).
This agreement involves the sale of Wistron Corp.’s entire indirect stake in Wistron InfoComm Manufacturing (India) Private Limited (WMMI). It carries a preliminary estimated transaction price of approximately $125 million (equivalent to NTD3.89 billion).
While this deal is significant for all parties’ confirmation and mutual signing of the relevant agreements, it will go through the necessary approval channels. Following the finalization of the transaction, Wistron will make the required announcements and filings, adhering to the applicable regulatory requirements.
India’s increasing significance in Apple’s global manufacturing strategy can be attributed to Prime Minister Narendra Modi’s financial incentives to boost local production and Apple’s decision to diversify its supply chain beyond China, especially amid the ongoing trade tensions between Washington and Beijing.
Earlier this year, Union Commerce and Industry Minister Piyush Goyal revealed that Apple had exported $5 billion worth of goods from India in 2022, emphasizing the company’s plans to produce 25 percent of global iPhone units in India over the next four to five years.
This acquisition of the Wistron Corp factory in Karnataka by India’s largest conglomerate marks the culmination of nearly a year’s significant negotiations. Additionally, Tata Group has been producing iPhone chassis, the metal framework of the device, at its sprawling facility in Tamil Nadu.
