Tata Group Acquires 100% Stake in Wistron to Manufacture iPhones in India

The Tata Group has announced its plans to acquire Wistron India, a key player in electronic manufacturing services.

This move marks Tata's entry into the iPhone assembly business, positioning the company to become an integral part of the Apple supply chain.

A Strategic Alliance

The Tata Group has signed a binding share purchase agreement with SMS InfoComm (Singapore) and Wistron Hong Kong Limited to acquire 100% equity stake in Wistron Infocomm Manufacturing (India).

This acquisition will enable the Tata Group to officially join the Apple supply chain as an iPhone assembler. The group plans to leverage the strong support from the Government and the potential growth of the electronic manufacturing services industry in India to bolster its manufacturing capabilities.

Details of the Tata-Wistron Deal

The Tata Group unveiled the plan to acquire Wistron India officially on October 27, announcing it would pay $125 million for 100% equity stake for the company's assembly lines.

The deal is reportedly worth a total of $750 million, inclusive of a $550 million inter-corporate loan given by the parent company to Wistron India. With this acquisition, the Tata Group will be able to move into end-to-end assembling of iPhones in India, joining the ranks of Foxconn, Pegatron, Luxshare, and Wistron in iPhone manufacturing.

Tata's Entry into iPhone Supply Chain

The Tata Group entered the iPhone supply chain with a casing's facility in Hosur, Tamil Nadu, starting with making a semi-finished iPhone SE model in India. Now, with the acquisition of the Wistron unit, Tata will be able to execute end-to-end assembly of iPhones in India.

Furthermore, according to Apple analyst Ming-Chi Kuo, Tata Electronics, alongside Foxconn and Pegatron, are expected to begin the manufacturing process of iPhone 17, slated for launch in 2025, as early as the second half of 2024. This signals a significant milestone in Apple's efforts in diversifying its supply chain.

Tata's Future as a Global Electronics Player

The Tata Group's acquisition of Wistron India marks a groundbreaking moment for the Indian electronics manufacturing industry. This move not only signifies Tata's commitment to strengthening its capabilities in the manufacturing sector but also positions the company as a key player in the global electronics manufacturing arena.

It will be intriguing to monitor the developments in this space and the potential impact of this acquisition on India's electronic manufacturing sector.

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