Source : TechStory
In a groundbreaking development, TATA Group has inked an agreement to acquire Wistron’s India entity – Wistron InfoComm Manufacturing (India) Pvt Ltd. This strategic move positions TATA Group as the first Indian company to undertake the local manufacturing of Apple iPhones. The Bangalore-based facility is now under TATA’s ownership, pending necessary regulatory approvals.
Tata Group Becomes First Indian Company to Manufacture iPhones
The acquisition marks a significant milestone for TATA Group, positioning it as the first Indian entity to engage in the end-to-end assembly of Apple iPhones. This accomplishment is lauded as a major win under the government’s visionary Production Linked Incentive (PLI) scheme for electronics manufacturing. Union Minister Rajeev Chandrasekhar commended TATA Group for this historic feat, emphasizing the scheme’s objective of establishing India as a global electronics manufacturing hub.
Implications of The Wistron Acquisition
With the purchase of Wistron’s operations, TATA Group is poised to play an important part in iPhone assembly, catering to both the domestic market and international exports. This move elevates TATA to an exclusive list of Apple contract manufacturers that includes industry giants like Foxconn, Pegatron, and Luxshare. The strategic acquisition positions TATA Group at the forefront of India’s efforts to become a prominent player in the global electronics value chain.
Renowned Apple analyst Ming-Chi Kuo has recently hinted at the possibility of TATA Group, alongside Foxconn and Pegatron, commencing preliminary iPhone 17 manufacturing in India by late 2024. This ambitious timeline, nearly a year ahead of the scheduled 2025 launch, underscores Apple’s commitment to diversifying its supply chains and reducing dependence on China. TATA’s involvement in this early manufacturing phase enhances India’s significance in the global electronics ecosystem.
Navigating The Complex Global Supply Chain Landscape
TATA Group’s foray into iPhone manufacturing aligns with a broader industry trend of companies re-evaluating and diversifying their supply chain strategies. The global landscape, marked by geopolitical uncertainties and disruptions, has prompted companies like Apple to seek alternative manufacturing partners. TATA’s entry into this sphere signifies a strategic move towards bolstering India’s position as a reliable player in the intricate global supply chain network.
Leveraging The PLI Scheme for Electronics Manufacturing
The success of TATA Group in becoming the first Indian iPhone manufacturer underscores the effectiveness of the Production Linked Incentive (PLI) scheme. This government initiative has been instrumental in attracting investments, fostering innovation, and positioning India as an attractive destination for electronics manufacturing. The acquisition of Wistron’s facility exemplifies the scheme’s ability to incentivize major players to contribute significantly to India’s manufacturing capabilities.
Strengthening India’s Position In The Global Electronics Landscape
TATA Group’s acquisition not only marks a historic achievement for the conglomerate but also reinforces India’s growing influence in the global electronics landscape. The ability to attract and facilitate partnerships with major technology players enhances India’s reputation as a manufacturing hub with a skilled workforce. This development is poised to contribute positively to the country’s economic growth and technological advancement.
As TATA Group steps into the realm of iPhone manufacturing, the future holds promising prospects for further collaborations and advancements in the electronics sector. The move not only benefits TATA but also opens doors for collaborative ventures, technological advancements, and potential partnerships that can reshape India’s part in the global technology ecosystem.
TATA Group’s acquisition of Wistron’s India entity stands as a historic moment, positioning the conglomerate as the first Indian company to manufacture iPhones. This achievement not only underscores the success of the PLI scheme but also launches India into a prominent position in the global electronics value chain. As TATA Group gears up for the assembly of iPhones, the collaboration with Apple and the broader implications for India’s manufacturing capabilities mark a transformative step towards technological self-reliance and global recognition.
