Tata is to develop new iPhone manufacturing in India, acquisition Wistron plant
Taiwanese electronics manufacturer Wistron selling its India operations to Tata Group for $125 million. Tata Electronics is going to become the first Indian company to manufacture new Apple iPhones in the country, which is a major fillip to the government’s ‘Make in India’ initiative. Currently, the iPhone 15 Plus, iPhone 12, and iPhone SE (second generation) are being manufactured/ assembled at Wistron's factory in Karnataka, which Tatas will take over. The company said in its regulatory filing that it will sell a 100 percent stake in the unit Wistron InfoComm Manufacturing (India) Pvt. to Tata Electronics Pvt.
The much-awaited deal has been finalized after strategic considerations in response to the reshaping of the group's product strategy and global manufacturing layout. Minister of State for Electronics and IT, Rajeev Chandrasekhar, said that within just two and a half years, Tata Group will start making iPhones from India for domestic and global markets. PM Narendra Modi’s visionary PLI scheme has already propelled India into becoming a trusted and major hub for smartphone manufacturing and exports.
He said that this is a "great going for Apple in building a global supply chain from India with Indian companies at its helm". MeitY stands fully in support of the growth of global Indian electronics companies that will, in turn, support global electronic brands that want to make India their trusted manufacturing and talent partner. Chandrasekhar added. Industry experts said that with their ambition on semiconductors and EVs, it only makes sense for the Tata Group to gain expertise in manufacturing high-end iPhones in the country.
For the first time, ‘Make in India’ iPhone 15 units were exported to other countries within a short span of time from its global launch last month. Apple received a tremendous response to the iPhone 15 series in the country, nearly 50 percent more than last year. Apple had set a June quarter record in India, driven by the robust sales of iPhones, according to CEO Tim Cook. Tarun Pathak, Research Director at Counterpoint, says Tatas' semiconductor ambitions are serious and came at a very important juncture amid India's digital goals. "First, they can leverage the semiconductor strength in their EV business and second, their chips can be aligned with Apple in the future, and the learning curve will be great for them",
India is now the second-biggest manufacturing hub for mobile phones due to heavy investment from original equipment manufacturers, original design manufacturers, and companies dealing in components and parts, The country saw mobile phone exports worth $5.5 billion (over Rs 45,000 crore) in the April-August period in the current fiscal year (FY24), government and industry data showed. As per the estimates by the Department of Commerce and the India Cellular and Electronics Association (ICEA), the April-August period saw mobile phone exports worth $5.5 billion, against $3 billion (about Rs 25,000 crore) in the same period in FY22-23. India is set to cross Rs 1,20,000 crore in mobile phone exports in the current fiscal year, with Apple leading the market with more than 50 per cent in FY24.
