If the acquisition goes through, India will have its first homegrown iPhone manufacturer
In recent developments, the Tata group has penned a new deal with Wistron, the Taiwanese manufacturing corporation, to takeover an iPhone manufacturing plant in south India, according to Bloomberg. The Indian conglomerate is soon expected to close the deal and establish the country’s first homegrown iPhone manufacturer. The joint venture involves Tata managing the main manufacturing process and Wistron assisting in the background. Additionally, Tata and Wistron are contemplating further possible tie-ups to further their joint venture, with Tata as the majority stakeholder. To receive incentives from the Indian government, the Indian brand and the Chinese corporation will have to complete their due diligence by the end of March. Spokespersons representing Tata have stated that the company is aiming to complete the due diligence process by the 31st of March.
If things proceed according to plan, India’s first iPhone manufacturing plant would be valued at over 600 million dollars, provided that all the requirements for receiving government incentives are fulfilled, according to sources. The talks between Tata and Wistron were reported to be initiated in December last year.
The recent developments are in line with Apple’s long-term strategy of shifting its manufacturing and assembly operations outside China after facing major supply chain disruptions in the recent past due to the nations’ strict Covid preventive measures, and the rising geopolitical tensions between the west and China. Currently, Foxconn Technology Group and Wistron are the major assemblers of iPhones, but if the deal goes through, China’s dominance in the manufacturing sector will be up for a challenge.