Tata to make iPhones in India for global markets; acquires Wistron plant for $125 mn

Tata Group is set to manufacture Apple iPhones in India for both domestic and global markets within the next 2.5 years, as announced by Electronics and Technology Minister Rajeev Chandrasekhar on Friday. This move underscores India's growing manufacturing capabilities and represents a significant shift from Apple's previous strategy of primarily selling iPhones made in China worldwide.

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The Tata Group has taken over the operations of Apple supplier Wistron Corp, a development confirmed in a board meeting. Wistron’s board approved the sale of Wistron InfoComm Manufacturing (India) Private Ltd. to Tata for $125 million, the Taiwanese electronics manufacturer said Friday in a statement.

The Union Minister expressed gratitude to Wistron for establishing a global supply chain in India with Indian companies at the forefront.

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Tata to take over Wistron plant

This decision is in line with Prime Minister Narendra Modi's efforts to incentivize domestic manufacturing, and it aligns with Apple's goal of diversifying beyond China amid trade tensions between Washington and Beijing. The Production-Linked Incentive (PLI) scheme introduced by PM Modi has already positioned India as a significant hub for smartphone manufacturing and exports, according to Chandrasekhar.

The PLI scheme, initiated in 2021 to stimulate domestic production, create jobs, and support exports, covers various sectors. Earlier this year, Union Commerce and Industry Minister Piyush Goyal stated that Apple had exported $5 billion worth of goods from India in 2022 and aimed to produce 25% of global units in India over the next four to five years.

Tata Group's acquisition of the Wistron Corp factory in Karnataka concludes nearly a year of negotiations. This 155-year-old conglomerate, known for its diverse business interests, has been making strides in electronics production and e-commerce. The group already manufactures iPhone chassis, the metal framework of the device, at its expansive facility in Tamil Nadu.