With Tata Group acquiring Taiwanese electronics manufacturer Wistron’s India operations for $125 million, Tata Electronics is poised to become the first Indian company to manufacture new Apple iPhones in the country. This move not only marks a significant achievement for Tata Group but also aligns with the Indian government’s ‘Make in India’ initiative, promoting indigenous manufacturing and boosting the economy.
Acquisition Details
Tata Group’s regulatory filing confirms the acquisition of a 100 per cent stake in Wistron InfoComm Manufacturing (India) Pvt., paving the way for Tata Electronics to take over iPhone manufacturing in India. Currently, models like iPhone 15 Plus, iPhone 12, and iPhone SE (second generation) are being produced at Wistron’s Karnataka facility, which will now transition to Tata’s operations.
Government Support and Vision
Minister of State for Electronics and IT, Rajeev Chandrasekhar, lauded this development, highlighting Prime Minister Narendra Modi’s PLI scheme and India’s growth as a smartphone manufacturing hub. He emphasized the significance of Indian companies like Tata Group spearheading Apple’s supply chain and supporting global electronic brands.
Industry Impact and Growth Prospects
Industry experts view this acquisition as a strategic move, aligning with Tata Group’s ambitions in semiconductors and electric vehicles (EVs). It positions Tata Group to manufacture high-end iPhone models in the future, contributing significantly to ‘Make in India’ and India’s role in the global electronics value chain.
Market Trends and Expectations
As iPhone consumption rises in India, Apple aims to expand production outside China, leveraging countries like India and Vietnam. Apple’s growing market share and export initiatives for ‘Make in India’ iPhones reflect a positive trend, with significant growth anticipated in the upcoming quarters.
Impact on India’s Manufacturing Landscape
India’s mobile phone exports have surged, reaching $5.5 billion in the April-August period of FY24. This growth, coupled with Apple’s dominance in the market, underscores India’s potential as a key player in global electronics manufacturing.
Future Prospects and Collaboration
Tata Group’s foray into iPhone manufacturing not only signifies technological advancement but also opens doors for collaboration with Apple in semiconductor development. This move aligns with India’s digital aspirations and positions Tata Group as a key player in shaping the country’s electronic manufacturing landscape.
