- Thursday, March 27, 2025
Apple’s inclusion of an Indian iPhone will bolster its push to expand manufacturing beyond China and strengthen technology production in India.
By: Shubham Ghosh
INDIA’s largest conglomerate Tata Group is nearing a deal to acquire an Apple supplier’s factory in August and it would be the first time that an Indian company would enter iPhone assembly, Bloomberg reported citing sources.
The sources, who chose not to be identified, said a takeover of the Wistron Corp. factory in the southern state of Karnataka, potentially valued at over $600 million, would cap about a year of talks. The unit, where more than 10,000 people work, assembles the latest iPhone 14 model.
To secure state-backed financial incentives, Wistron aims to ship iPhones worth $1.8 billion from the factory by March 2024 and increase the workforce threefold, the sources added, according to Bloomberg. Tata will uphold these commitments as Wistron withdraws from iPhone business in the South Asian country.
In May, the Times of India reported that the key reason for Wistron to exit Apple India’s business is its failure to penetrate Apple’s supply chain. The Taiwan-based company also reportedly faced challenges in coping with the local work culture.
Bloomberg added spokespersons from Tata, Wistron and Apple chose not to comment on the matter.
Apple’s inclusion of an Indian iPhone will bolster its push to expand manufacturing beyond China and strengthen technology production in India. Wistron exported around $500 million worth of iPhones from India in three months ending June 30, while Foxconn and Pegatron, other key Taiwanese suppliers, have also increased their local presence, Bloomberg added.
India has seen progress in domestic manufacturing since prime minister Narendra Modi started government programmes with lucrative financial incentives for expansion, production and generation of jobs. Apple also started diversifying away from China in the aftermath of the Covid-19 lockdowns and growing tensions between Washington and Beijing.
The entry of an Indian company into making iPhones could be a significant boost for Modi’s endeavour to challenge China’s manufacturing dominance. This move may encourage other global electronics brands to consider production in India, reducing their reliance on India’s northern neighbour.
Tata Group, a 155-year-old conglomerate involved in various sectors — from salt to tech services — is expanding into electronics production and e-commerce. With an existing factory in the southern state of Tamil Nadu, they already manufacture iPhone chassis.
Additionally, chairman N Chandrasekaran has expressed the group’s aspirations in chipmaking, the Bloomberg report added.
