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Tata Group is close to signing an agreement to acquire Apple supplier Wistron's factory as soon as August, Bloomberg reported on Tuesday. This would make India's largest conglomerate the first local company to move into the assembly of iPhones.
Wistron's factory in Karnataka is potentially valued at over $600 million and employs over 10,000 workers. It assembles the iPhone 14 model.
Wistron had earlier committed to supplying iPhones worth $1.8 billion from the factory this year. It had also planned to triple the workforce at the plant. These commitments will now be honoured by the Tata Group, Bloomberg said.
This is expected to add momentum to Apple's efforts to diversify its production away from China. Apart from Wistron, Apple's key suppliers in India are Foxconn Technology Group and Pegatron Corp.
Apple has recently stepped up its efforts to diversify away from China amid rising tensions between China and the US, and coronavirus-related restrictions.
Also Read: Apple may shift 18% of iPhone production in India by FY25: Bank of America
Also Read: Apple may shift 18% of iPhone production in India by FY25: Bank of America
Earlier, a report by the India Cellular and Electronics Association (ICEA) said that Apple exported iPhones worth Rs 10,000 crore from India in May. It was the first brand to achieve this milestone in India. In the first two months of 2023-24 (FY24) alone, iPhone exports from India stand at over Rs 20,000 crore ($2.4 billion). In the same period last year, India exported Apple phones worth Rs 9,066 crore.
According to the report, Apple accounts for 80 per cent of all smartphone exports from India. The rest 20 per cent is shared by Samsung and some other brands.
The Tata Group sells several products in India ranging from salt to technology services. Of late, it has also sought inroads into electronics production and e-commerce. It already makes chassis for iPhones from its factory in Tamil Nadu.
