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Tata will set up India’s largest Apple iPhone factory: Report

Sean — Mon, 11 Dec 2023 09:46:08 +0000

Apple has already expanded its iPhone production to India via different contract manufacturers. Now, it appears that the largest facility for iPhone production will be established by the Tata Group. So here are all the details.

Tata’s new iPhone factory will be set up in Tamil Nadu

For those unaware, the Apple iPhone is manufactured in facilities from other known suppliers like Foxconn and Wistron. Interestingly, the latter recently struck a deal with Tata, which helped the Indian giant become the first homegrown iPhone maker. Tata Group will be constructing the massive iPhone assembly plant in Hosur, Tamil Nadu (South Indian State). This large facility is in line with the Cupertino based giant’s plans to expand iPhone manufacturing in India.

The new Tata iPhone factory is expected to have 20 assembly lines and will create a large number of jobs over the next two years since it could bring in up to 50,000 workers. The new site is expected to become operational within the next 12 to 18 months. Apple is working on expanding its Indian production for iPhones to diversify its supply chain outside of China. The company and its suppliers aim to make over 50 million iPhones annually in India over the course of the next two to three years. Its plans are also bolstered by incentives from the local government.

The PLIs (production-linked incentives) have encouraged key Apple suppliers like Foxconn and Pegatron to increase their foothold in the Indian market. Thanks to such incentives, iPhone assembly in the region has risen significantly, exceeding 7 billion US Dollars in the previous fiscal year and even accounting for 7 percent of Apple’s global production share. The new facility also showcases the growing strategic partnership between Apple and the Tata Group.

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Tata to become first Indian iPhone manufacturer as Wistron deal nears completion

Soumyakanti — Tue, 11 Jul 2023 12:21:59 +0000

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.

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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Tata Group Reportedly Acquires Wistron’s Production Line, Will Manufacture iPhone 15 and 15 Plus In India

Viraj Gawde — Sun, 14 May 2023 09:18:15 +0000

Last month Apple opened the doors to its two offline stores in India’s Mumbai and Delhi. The Cupertino-based tech giant has three contract manufacturers in India namely Foxconn, Pegatron, and Wistron. Now according to a research firm TrendForce, Tata Group is set to become Apple’s fourth contract manufacturer following its acquisition of Taiwanese firm Wistron factory in South India.

Tata Group to manufacture iPhone 15 and 15 Plus

Apple currently has three contract manufacturers in India namely Foxconn, Pegatron, and Luxshare. Foxconn is one of the company’s oldest contract manufacturers. Taiwanese firm Wistron was set to wind down its India operations once Tata Group takes over its manufacturing plant in Karnataka. Now, the Indian conglomerate has reportedly acquired Wistron’s production line in the country. This marks Wistron’s exit from iPhone assembly business in India.

As per the report, Tata Group has received orders for the next-generation iPhone 15 and 15 Plus models that are set to debut later this year. This indicates that India will become the first wave of shipments for the new iPhone series. The research firm states that the Indian conglomerate will get a small chunk of iPhone 15 and 15 Plus production. It will only assemble 5 percent of both models. Foxconn and Luxshare will assemble 70 and 25 percent of the regular variant respectively. Luxshare and Pegatron are said to get 60 and 35 percent of assembly orders of the Plus variant respectively.

As for the iPhone 15 Pro models, Foxconn will get 70 percent of assembly orders of the Pro and Pro Max. Pegatron will get the rest of the 30 percent share of the former whereas the latter will be taken up by Luxshare.

Trendforce says that as per Apple’s patterns, new suppliers receive smaller orders for the lower-end models. This could be a pilot move and if everything goes well, Tata Group could get a higher percentage of manufacturing iPhone units next year.

India is the second-largest smartphone market. Apple has been locally producing iPhones in the country since 2017 and is also ramping up its manufacturing efforts. The company has also been witnessing growth in India. The Cupertino-based tech giant is aiming to reduce its dependency on China (due to various reasons) by shifting its production facilities to other countries.

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Tata Group reportedly set to complete acquisition of Wistron’s iPhone factory in India

Soumyakanti — Mon, 10 Apr 2023 14:12:17 +0000

Tata Group, the Indian multinational conglomerate, is reportedly in the final stages of acquiring Wistron’s iPhone manufacturing facility in India. The deal, worth over Rs 5,000 crores, is expected to be completed by the end of April. The facility, located in Karnataka, currently produces iPhone 14 and 12 models and is equipped with eight assembly lines.

Credit: Reuters Photo

Following the acquisition, Tata Group plans to begin assembling the iPhone 15 later this year. The move could see India become a key manufacturing hub for Apple products, as three Taiwanese firms – Wistron, Pegatron, and Foxconn – currently assemble Apple products in India. While Wistron is leaving the country’s iPhone business, Foxconn and Pegatron have recently expanded their production operations.

Tata Group’s interest in Apple manufacturing comes as the Indian government actively pushes for the country to become a production hub, and Apple seeks to move out of China. Industry experts suggest that the acquisition could prove lucrative for Tata Group, with speculations that the company may move on to acquire Pegatron’s iPhone manufacturing facilities once the Wistron deal is finalized.

However, the acquisition may also result in job losses, as sources indicate that around 2,000 factory workers may need to depart. Additionally, a reduction of 400 mid-level executives and the departure of 4-5 senior executives are also on the cards. Despite this, Tata Group has reportedly begun organizational changes at the facility in preparation for the acquisition.

The move highlights the growing trend of multinational conglomerates expanding their presence in the tech industry, with Tata Group joining the ranks of Apple’s current manufacturing partners. As the tech industry continues to grow and evolve, the acquisition could have significant implications for both Apple and the Indian manufacturing sector.