Tatas to start making Apple iPhones in India after $125-million Wistron plant deal

Apple iPhones to be made in India by Tata (Representative Image)

It’s official. Tata Group will commence production of Apple iPhones in India for both domestic and global markets, Union Minister of State for Electronics & Technology, Rajeev Chandrasekhar, has announced on social networking platform X.

This makes Tata India’s first homegrown iPhone maker, after Wistron Corporation agreed to sell a plant in the southern part of the country to the conglomerate.

In a meeting held earlier today, the Taiwanese electronics manufacturer, Wistron, announced that its board has approved the sale of Wistron InfoComm Manufacturing (India) Private Ltd. to Tata for $125 million.

Apple’s iPhones are mainly assembled by Taiwanese manufacturing giants like Pegatron Corp. and Foxconn Technology Group.

While announcing the scheme, Chandrasekhar posted on X (formerly Twitter), "Now within just two and a half years, Tata Companies will now start making iPhones from India for domestic and global markets from India. Congratulations to the Tata team for taking over Wistron operations."

"Thank you Wistron for your contributions, and great going for Apple in building a global supply chain from India with Indian companies at its helm, the union minister also said.

"Ministry of Electronics & IT stands fully in support in growth of Global Indian Electronics companies that will in turn support global Electronic brands that want to make India their trusted manufacturing & talent partner and to realize PMs goal of making India a global electronics power," he added.

After the mutual signing of the relevant agreements by all parties, the transaction will then proceed to secure the required approvals. Upon the finalization of the transaction, Wistron will fulfill the necessary announcements and filings in compliance with the applicable regulatory requirements.

According to a Bloomberg report published in July this year, citing sources familiar with the matter, Tata Group was approaching an agreement to acquire a factory from a supplier of Apple Inc. The introduction of an Indian-manufactured iPhone is expected to boost Apple's endeavors to expand its product range beyond China and strengthen its technology manufacturing presence in the South Asian country, the report said.

At the beginning of this year, Union Minister Piyush Goyal said Apple Inc wants India to account for up to 25% of its production from about 5%-7% now.

Cupertino, California-based Apple, in alignment with the Indian government's focus on promoting domestic manufacturing, initiated iPhone assembly in India in 2017 through partnerships with Wistron and later Foxconn.

India's PLI Scheme surpasses expectations: Rs 6,887 cr investments attracted by June 2023

The production-linked incentive (PLI) scheme for large-scale electronics manufacturing has attracted investments of Rs 6887 crore till June 2023. The number has breached the ministry’s target which had aimed for an investment of Rs 5,488 crore till the end of FY24.

Launched in 2021, the output-linked programme covers 14 sectors such as telecommunication, white goods, textiles, and manufacturing of medical devices with an outlay of Rs 1.97 lakh crore.

It offers financial incentives to companies that manufacture products in India in the 14 said sectors. The incentives are based on parameters such as incremental sales, export generation, and job creation.

The Tata Group is involved in a wide array of businesses, from selling salt to providing tech services. In recent years, the conglomerate has embarked on a journey to enter the realms of electronics manufacturing and e-commerce.

The group currently produces iPhone chassis, which forms the metal framework of the device, at its factory in the state of Tamil Nadu. Additionally, Chairman N Chandrasekaran has previously expressed the group's aspirations to venture into chipmaking.