Tata Secures $125 Million Wistron Deal to Produce iPhones in India

For over half a decade, Apple has been involved in the assembly of iPhones in India. The first "Made in India" iPhone, the iPhone SE, rolled off the assembly line in 2017, produced by Foxconn. Since then, Apple has partnered with two more companies, Pegatron and Wistron, for iPhone manufacturing in India.

However, recent developments indicate a major shift in this landscape. Wistron, one of Apple's key manufacturing partners in India, is set to exit the iPhone production business in the country. The significant twist in this tale is that Tata Electronics Private Limited (TEPL), a part of the Tata Group, renowned for its diverse business ventures, will be acquiring Wistron's entire 100% stake, marking the first time an Indian company will be directly involved in iPhone production.

Tata Electronics Enters the iPhone Business

TEPL, a subsidiary of the iconic Tata Group, known for its ventures spanning from salt to software to automobiles, will acquire the indirect stake from Wistron InfoComm Manufacturing India Private Limited for an estimated transaction price of $125 million (INR 1,042 crores/€118 million).

In a noteworthy statement, Mr. Rajeev Chandrasekhar, India's Union Minister of State for Entrepreneurship, Skill Development, Electronics & Technology, announced that Tata will commence iPhone production in India. These iPhones will be intended for both the domestic and global markets.

A Win for India's "Make in India" Initiative

The introduction of Tata Group into iPhone manufacturing holds the potential to be a significant boost to Indian Prime Minister Narendra Modi's "Make in India" initiative. This initiative encourages domestic and international companies to manufacture their products in India, with a focus on enhancing the country's self-reliance and economic growth. Tata's entry into iPhone production not only strengthens this campaign but also showcases India as an attractive alternative to China for electronics manufacturing.

Apple and Other Tech Giants in India

Tata Electronics' venture into iPhone production is not an isolated event in India's tech landscape. Tech giants like Apple, Google, and Samsung have recently decided to manufacture their flagship phones in India. This trend aligns with the Indian government's vision of attracting foreign companies to establish manufacturing operations in the country.

Furthermore, India is playing a crucial role in the global 5G rollout, with approximately 80% of the equipment used for this purpose being manufactured within the country. Additionally, India is not only designing but also exporting telecom equipment to over 70 countries, showcasing the nation's growing capabilities in tech-related areas.

The Indian Semiconductor Mission has also revealed that India is increasingly involved in designing complex chips, with around 1,20,000 engineers engaged in chip design, highlighting the country's technological prowess.

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