Tata Group could become India’s first iPhone maker amid Wistron factory acquisition: Report

The Tata Group is on close to a deal to acquire an Apple Inc. supplier's factory. The agreement could be finalised as early as August and will mark the first time that a local company would move into the assembly of iPhones.

The Tata Group is plotting a takeover of the Wistron Corp. factory in southern Karnataka, which is potentially valued at over $600 million, according to Bloomberg reporting. The report cites unnamed sources to maintain their privacy.

Will Tata be the first Indian company to manufacture iPhones?

The Wistron factory in the state of Karnataka currently employs more than 10,000 workers, who assembled the vanilla iPhone 14 model last year. Wistron has committed to shipping at least $1.8 billion worth of iPhones from the factory in the fiscal year through March 2024.

People close to the matter said that the goal was set so Wistron could win state-backed financial incentives. Wistron also made plans to triple the factory's workforce by 2024, a commitment Tata will reportedly honour as Wistron exits the iPhone business in India.

All three parties concerned with the acquisition, Tata, Apple, and Wistron have declined to comment on the report, according to Bloomberg. However, if the deal does go through, it will make the Tata Group the first company from India to manufacture iPhones for Apple.

Apple looks to ramp-up iPhone production across the globe

Apple have been attempting to diversify its product base beyond China after the Cupertino-based tech giant took a major hit to its supply chains in the country during the coronavirus pandemic and tensions between Washington and Beijing.

India is also fast become one of the biggest markets for Apple, while iPhone 14 sales have shown strong growth despite an overall slump in the smartphone industry. Wistron exported around $500 million in iPhones from India in the three months ended June 30. Additionally, other suppliers including Foxconn Technology Group, and Pegatron Corp., have also reportedly ramped up production locally.

A major step in challenging China's manufacturing dominance

India also aims to ramp up its domestic manufacturing as PM Narendra Modi set up new government programs with lucrative financial incentives to expand production and employment in the country. And Tata's acquisition of Wistron could significantly boost India's attempts to challenge China.

Over the past few years, the Tata Group has stepped up its efforts to make inroads into e-commerce and electronics production. The Group currently sells everything from salt to tech services in India. Additionally, the report also notes that the Group already makes iPhone chassis at its factory in Tamil Nadu.