In a significant development, Tata Group is reportedly in advanced stages of acquiring the Karnataka manufacturing unit of Wistron, a Taiwan-based contract manufacturer for Apple. Through its wholly-owned subsidiary, Tata Electronics, Tata Group aims to become the first Indian iPhone maker, according to sources familiar with the matter. Both Tata Group and Wistron declined to comment on the news, while Apple did not respond to inquiries.
Apple’s Ecosystem Control Influences Public Announcement Timing
The timing of a public announcement regarding the acquisition depends on Apple’s decision, as the company closely manages its ecosystem. It is anticipated that, besides iPhones, the Karnataka plant under Tata Group’s ownership could also assemble other new Apple products.
Expansion Beyond iPhone Production and Growth Prospects
Tata Group’s move to acquire the manufacturing unit of an Apple supplier is expected to bolster Apple’s efforts to diversify production outside of China and gain momentum in the second-largest smartphone market globally. This development opens up opportunities for Tata Group to expand its manufacturing capabilities beyond iPhones and contribute to the growth of India’s electronics manufacturing sector.
Government Support and Positive Industry Response
Rajeev Chandrasekhar, Minister of State for Electronics and IT, expressed enthusiasm for the news, emphasising the Indian Government’s aim to bring National champions into Global Electronics value chains through initiatives like the Production-Linked Incentive (PLI) scheme. He regarded the closer proximity of Tata Group to manufacturing the iconic iPhone as a positive development that will foster growth in the Indian Electronics Manufacturing Services (EMS) sector and the supply chain ecosystem. The Government and Industry stakeholders welcome this move by Tata and Apple.
India’s booming smartphone market, coupled with Government policies promoting the Electronics sector, has attracted large suppliers to expand their operations in the country. Apple has recognized India’s potential as an “incredibly exciting market” and a major focus for the company. With a successful retail expansion in India and impressive growth in the market, Apple aims to capitalise on the country’s opportunities.
Apple’s Taiwanese suppliers, including Pegatron Corp., have also witnessed increased presence and scale in India, further indicating the Industry’s positive outlook in the country.
