Tata Group is on the verge of acquiring Wistron Corp’s Karnataka factory, a facility that assembles iPhone 14. Should the acquisition be successful, Tata will become the first Indian company to produce iPhones, not just for the domestic market but also for global distribution. The deal, which is expected to be finalized by August, is a part of India’s drive to establish itself as a leading player in hardware manufacturing, a vision championed by Prime Minister Narendra Modi’s made-in-India initiative.

Apple iPhone 13

India’s Drive to Become a Global Hardware Manufacturer

The Karnataka factory, currently valued at $600 million, has a workforce of over 10,000 employees. As part of an existing contract, Wistron is committed to delivering iPhones worth $1.8 billion in the current fiscal year through March 2024. The plan also includes expanding the workforce threefold in the next year. Tata Group has reportedly agreed to honor these commitments.

The acquisition is significant in the context of shifting global manufacturing dynamics, as many tech firms are seeking alternatives to China for their high-end device assembly. Apple, in particular, is turning its attention to India as a new production hub. The move aligns with India’s aggressive tax incentives to promote the domestic manufacture of electronics, including smartphones.

Moreover, India has attracted other major smartphone manufacturers such as Samsung, Xiaomi, and Vivo, to establish local production facilities. Smartphone exports from India, which include iPhone exports, have reportedly increased by 128% in April and May of this year. Despite Vedanta’s failed joint venture with Foxconn for a semiconductor project, India’s ambition to bolster its domestic electronics industry remains strong, with Tata’s imminent acquisition playing a vital role.

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