Tata Group has clinched a deal to acquire Wistron Infocomm Manufacturing (India). This $125 million acquisition paves the way for Tata to fully assemble iPhones in India, heralding a new era for the nation’s electronics manufacturing sector.
What Happened? Randhir Thakur, the head honcho of Tata Electronics, expressed enthusiasm about the acquisition in a statement noting the promising trajectory of India’s Electronic Manufacturing Services (EMS) industry, buoyed by robust government support. He also acknowledged Wistron’s cooperation during the acquisition process.
Previously, Tata only produced semi-finished iPhone SE casings in Tamil Nadu as part of the iPhone supply chain. However, with this acquisition, Tata is set to become the first Indian company to fully assemble iPhones, joining global manufacturing giants like Foxconn and Pegatron.
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Why it matters? The move is not just a win for Tata but a significant boost for India’s manufacturing landscape. The acquisition is expected to kickstart further investments and showcase the maturing capabilities of Indian contract manufacturers. Rajeev Chandrasekhar, India’s Minister of State for Electronics and IT, regards Tata’s entry as a testament to the sector’s growth and maturity.
Wistron’s expertise and infrastructure, including four iPhone assembly lines, will now be at Tata’s disposal. This acquisition is a strategic leap for Tata, enabling it to climb higher up the Apple value chain.
In the backdrop of this development, Apple analyst Ming-Chi Kuo anticipates that Tata, alongside global partners, will begin the preliminary manufacturing of the iPhone 17 by the latter half of 2024. This aligns with Apple’s broader strategy to diversify its manufacturing footprint, with plans to shift a quarter of its iPhone production to India by 2025, reducing its reliance on China.
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