According to reports, the Tata Group is nearing an agreement that would make it the first Indian manufacturer of Apple’s iPhones.
According to Bloomberg, the Tata Group, the largest conglomerate in India, is almost ready to buy a facility that manufactures luxury smartphones for Apple Inc. in Taiwan.
According to Bloomberg, which cited unnamed persons with knowledge of the situation, The Tata Group is close to reaching a deal to buy a facility that supplies Apple in Karnataka. If successful, this would make it the first Indian business to produce iPhones.the acquisition of the Wistron Corp. factory, valued at over $600 million, is expected to be completed in August. The factory, which currently employs more than 10,000 workers, is primarily involved in assembling Apple’s iPhone 14.
In contrast, Wistron plans to exit the business, while Tata has ambitious plans to utilize the facility for shipping iPhones worth $1.8 billion. Initially, Wistron aimed to leverage this arrangement to secure financial incentives from the government.
This development aligns with the trend of U.S. tech companies exploring alternative manufacturing options outside of China. With both the U.S. and Chinese administrations imposing restrictions on each other’s tech firms and impeding the seamless exchange of advanced technology, diversifying production locations has become crucial.
China’s stringent COVID-19 lockdown measures, implemented as part of its zero-COVID policy, had a significant impact on Apple’s suppliers. For example, during an October 2022 lockdown, workers from Apple’s largest iPhone assembly factory in Zhengzhou managed to escape.
In recent times, the 155-year-old Tata Group has ventured into new domains such as electronics production and e-commerce, marking a significant expansion for the conglomerate. The group has already been involved in manufacturing an iPhone chassis, which serves as the structural framework for the device.
Tata Sons Chairman N. Chandrasekaran stated in December that the group was exploring the possibility of producing its chipsets in India and was in discussions with multiple industry players.
According to Nikkei Asia, Tata’s foray into chipmaking will be a groundbreaking move for India, where the semiconductor market is projected to more than double between 2021 and 2026, reaching $64 billion in value.
Interestingly, Taiwan’s Foxconn, a global contract electronics manufacturer, recently withdrew from a semiconductor joint venture with Indian conglomerate Vedanta. The partnership, established last year, aimed to establish semiconductor and display production facilities in Gujarat with an investment of approximately Rs 1.5 lakh crore.
As of now, there has been no official statement regarding the acquisition from Apple, Tata, or Wistron.