Tata Group may soon become the first Indian company to assemble iPhones for India and other global markets. Tata has been in talks to acquire Taiwan-based Wistron Corp’s factory in Karnataka for months.
As reported by Bloomberg, both parties are “close to an agreement,” adding that a formal takeover may happen by August. Wistron assembles iPhone 14 at its Karnataka facility, which will be overseen by Tata Group once the deal is finalized.
Tata Will Fulfill PM Modi’s Goal
The PM Narendra Modi-led government’s long-term goal was also to improve India’s reputation in the hardware manufacturing sector, so the deal with Ata could help. The made-in-India initiative has been vigorously promoted by the government, and it was also discussed during PM Modi’s most recent trip to the United States.
How The Deal Will Take Place Between Both
According to the report, Wistron’s factory in Karnataka could be worth $600 million, or more than Rs 4000 crore. The iPhone 14 the most recent generation is assembled here by more than 10,000 workers.
The report adds that the Taiwanese maker has committed Apple to send iPhones worth $1.8 billion in the ongoing monetary year. Wistron marked the arrangement with the iPhone producer to win in the financial year through Walk 2024, according to individuals acquainted with the Goodbye Wistron arrangement to Bloomberg.
Companies Looking For China’s Alternative
Several tech companies are looking into China alternatives for the assembly of their premium devices, so Tata’s agreement to take over the Wistron factory in India will also be significant. Already, Apple is putting a lot of faith in India as the next manufacturing hub. A report last month noticed that Apple could build iPhone creation ability to 18 percent by 2025.
India Is Attracting Many Smartphone Brands
India has also managed to attract other smartphone players to set up factories in India. Samsung opened the “world’s largest mobile factory” in Noida, Uttar Pradesh. Many Chinese brands, including Xiaomi and Vivo, assemble their devices in the country, which also get exported elsewhere.
Last month, India’s top electronics industry body, the India Cellular and Electronics Association (ICEA), informed IANS that smartphone exports from the country have experienced significant growth of 128 percent in the months of April and May this year