Tata Group is close to signing an agreement with key Apple supplier Wistron to acquire its factory in Karnataka, marking the first Indian company to enter into iPhone assembly space, reported Bloomberg, citing people familiar with the matter. The potential deal could materialise as soon as August, as per the report. It was earlier reported that the Taiwanese electronics company is preparing to wind down its operations in India after a successful business stint spanning over fifteen years.
According to the report, the negotiation for the takeover of the Wistron Corp. factory in Karnataka, valued at $600 million, has been going on for over a year. The facility employs more than 10,000 workers and assembles the latest iPhone 14 model.
Wistron, as per the report, committed to ship at least $1.8 billion worth of iPhones from the factory in the fiscal year 2023-24 to secure state-backed financial incentives. It also had plans to triple the plant’s workforce by next year. India’s largest conglomerate, Tata is set to honour those commitments.
Also read: OnePlus Pad Review: A Spellbinding First Attempt
Earlier this year, it was reported that Wistron exported nearly $500 million worth of iPhones from India in the three months ended June 30. Apple’s other key Taiwanese suppliers, Foxconn Technology Group and Pegatron Corp., have also ramped up production in India. According to the report, the introduction of an Indian-made iPhone is expected to provide a significant push to Apple’s endeavors of diversifying its product manufacturing beyond China and strengthening its technology manufacturing presence in India.
The government is also pushing to attract more players in domestic manufacturing with attractive financial incentives to promote production and generate employment opportunities.
The Tata Group, with a rich history of 155 years and a diverse portfolio ranging from salt to tech services, has recently ventured into electronics production and e-commerce, the report noted. Adding that Tata group already makes the iPhone chassis, or the metal backbone of the device, at its factory, spread over hundreds of acres of land in Tamil Nadu state.
Subscribe And Follow ABP Live On Telegram: https://t.me/officialabplive